Landlord with multiple income remortgages small flat over commercial property

A broker approached us for help in placing a deal for his client.

The client is an experienced landlord who was seeking a remortgage in order to raise funds to repay an existing loan on a small one-bed flat over commercial property. 

The broker was struggling to place the deal with many funders because:

• The flat was very small

• It was above commercial property

• The landlord is 72

• Her income is made up of rent and pension

Luckily we were able to place this case within Keystone’s New Classic Range where there is no minimum property size, properties above commercial are accepted as standard, there is a maximum age limit of 85 years at the end of the mortgage term, and multiple sources of income are fine too.

Here are the details of the deal:

Property value: £93,000

Loan amount: £69,750

LTV: 75%

Rate: 4.79% 3 year fixed

Term: 12 years interest only

Lender arrangement fee: 2% (£1,395)

Mortgage payment: £278 pcm

Rental income: £435 pcm

Gross yield: 5.6% pa

Consultant: Peter Barnes

Consultant tel: 01732 471641

13th August 2015