The client is an experienced buy to let landlord. He was looking to purchase a 5-bed property to let out to professionals on an HMO basis. The property was not in a good enough condition to be let and required considerable refurbishment.
Buy to let mortgages are not available on properties that are not ready to let, so a short term bridging facility seemed to be the best option. We sourced a lender that accepts HMOs as security. The deal went through because the client could demonstrate previous buy to let experience including the running of an HMO property and he had also renovated properties to let out in the past.
We were able to secure funding at 0.69% pcm to 70% LTV with a 2% arrangement fee and crucially, no exit fee. The funding was offered for a 12-month term but the client was able to sell the property after just seven months.
Here are the details of the deal:
Property value: £245,000
Loan amount: £171,500
Rate: 0.73% pm
Term: 12 months
Lender arrangement fee: 1.75%
Completion date: January 2014
This is just one example of how I've helped a client secure short term finance. To see more of my case studies please visit my profile page. And if you have any funding requirements, please do not hesitate to contact me. My direct line and email address can be found below.
7th January 2014