How to maximise borrowing and remortgage your buy to let within 6 months of purchase

It can be difficult for landlords to remortgage within six months of purchase let alone maximise borrowing, so it’s refreshing to see that Keystone will lend more than most in these scenarios. Here’s how…

Only a few buy to let lenders allow landlords to remortgage properties within six months of purchase. Those that do base their lending on the purchase price plus the amount the landlord has spent on refurbishment works OR the market value, whichever is LOWER.

This can be particularly frustrating for landlords who use a “buy, refurb, refinance, let” model and need to get as much capital back as possible in order to move onto the next project, as this example shows:

Purchase price = £100k
Refurb costs = £20k
Market value = £140k
Maximum remortgage amount = £90k (75% of £120k)

Keystone Property Finance takes a different stance and will lend against the higher, market value, as long as the amount you end up borrowing does not exceed the total costs of buying and refurbishing the property in the first place.

Using the example above means that you would be able to borrow £15k more - a tidy sum, particularly when you need to raise as much as possible for your next project.

Purchase price = £100k
Refurb costs = £20k
Market value = £140k
Maximum remortgage amount = £105k (75% of £140k)

Keystone will also consider remortgages within six months for landlords looking to:

• Repay bridging loans
• Consolidate debt
• Get a better rate
• Raise capital on newly inherited property

As a specialist buy to let lender Keystone works well for landlords borrowing both personally and via a limited company. It will even lend to trading businesses which is good news for you property developers!

If this is of interest, do get in touch to talk through the options. I can be contacted directly or you can speak to any of our qualified brokers on the BTL Desk. Call 0345 345 6788.


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