We were approached by a broker who was looking to place a deal for clients wishing to raise funds for further buy to let investment.
The clients are a married couple who own more than 30 rental properties in an SPV limited company.
They were hoping to raise finance against a five-bed HMO let to students in a university town in the East Midlands.
A rate from Keystone’s New Classic Range for Limited Companies met the clients’ requirements and an application was submitted.
During the legal process it was discovered that the title deeds to the property were inaccurate, so we worked with the solicitor’s on both sides to ensure that the error was corrected in order that the mortgage could proceed.
Here are the details of the deal:
Property value: £230,000
Loan amount: £165,000
Rate: 5.39% 5 year fixed
Term: 25 years interest only
Lender arrangement fee: 2.25% (£3,712) added to loan
Rental income: £1,971 pcm
Mortgage payment: £741 pcm
Gross yield: 10.3% pa