Purchase of new build property for hoteliers with adverse credit

A broker approached us for finance on behalf of a married couple who own and run a hotel business, living in owner’s accommodation on site.

They were looking to purchase a new build property located in Scotland to start building their property portfolio for an added income.

The couple own the hotel in a limited company of which they are both equal shareholders and directors.

The broker was struggling to place this case due to the clients’ untidy credit record consisting of missed mortgage payments within the year, CCJ’s and missed card payments.

Luckily they fitted the Keystone Solutions Range and were offered the following deal.

Property value: £275,000

Loan amount: £150,000

LTV: 55%

Rate: 8.49% 3 year fixed 

Term: 3 years interest only

Lender arrangement fee: 3% added to loan (£4,500)

Rental income: £1,300 pcm

Mortgage payment: £ 1,061 pcm

Gross yield: 5.7% pa