Non-homeowner raises capital on unencumbered property for further investments

The client is a landlord and director of a number of companies. He owns three buy to let properties and one commercial property all of which are rented out. He was looking to raise capital against one of the BTL properties which he owns outright (personally) in order to expand his portfolio.

The broker had struggled to place this case with a number of lenders because the landlord:

• He is 77 years old and most lenders will not fund to over 75 year olds, especially not on an interest only basis.

• He does not own his own home

Fortunately, Keystone was able to offer a product from the New Classic Range because the client had sufficient property assets and could demonstrate experience as a landlord.

Keystone also accept borrowers up to 85 years of age at the end of the mortgage term.

Here are the details:

Property value: £87,000

Loan amount: £56,500

LTV: 65%

Rate: 4.99% 5 year fixed

Term: 7 years

Lender arrangement fee: 2% of loan (£1,130)

Rental income: £495 pcm

Mortgage payment: £235 pcm

Gross yield: 6.8% pa