Buy to Let portfolio refinance

Clients were experienced landlords who had developed a portfolio of 40 low value Buy to Let properties in Wales, with a typical value c£40,000. The portfolio was financed by traditional bank borrowing at 70% loan to property value, on a capital and repayment basis. Rising capital values meant that it was desirable to embark on a significant round of acquisitions but this was hindered by rising values and the need to insert 30% of the purchase price plus costs into the deal.

How did we help?

We were able to organise refinancing of selected properties at 85% loan to property value to raise £200,000 towards new purchases together with a pre-agreed funding line of £1.8m for new purchases. This has enabled the landlord to acquire in excess of 20 properties in a six month period with speed of response and limited administration, combined with a pre sanctioned limit enabling them to compete equally with cash buyers for well priced properties.

Scheme: Bank Base Rate + 1.875%
Bank Base Rate: 3.5%
Interest Margin: 1.875%
Payable Interest rate: 5.375%
Loan amount: £450,000
Loan to Property Value: 65% (new valuation) 103% (property price)
Repayment: Capital and Interest
Term: 25 years