Search
4-bed House in Multiple Occupation

Fast remortgage of HMO for portfolio landlord raising capital

07.02.18 | Written by: Paul Martins

The client: An experienced portfolio landlord who owns 10+ rental properties personally.

The property: A licensed HMO in London let to four sharing professionals.

The finance required: The client was looking to remortgage to raise capital from the HMO to help his son get into buy to let. He was in a rush to raise the funds, as his son was trying to buy a property where the vendor was looking for a quick sale.

The client requested a rate with no early repayment charges (ERCs) which limited the number of products available.

The application process: We approached a buy to let lender which we knew would be able to turn the application around swiftly and is currently offering rates without ERCs.

The lender instructed a valuation of the HMO and within two days of this being undertaken, a formal offer to lend was issued. We then worked quickly with the lender, the client and the solicitors to push the application through and the entire case completed just two weeks later. Here are the details:

Property value: £1,100,000

Loan amount: £458,260

LTV: 42%

Rate: 3.34% 2 year discounted tracker – no ERCs

Term: 10 years interest only

Lender arrangement fee: 1.5% added to the loan (£6,873)

RTI calculation: 145% @ 5.5%

Mortgage payment: £1,294pcm

Rental income: £3,400pcm

Gross yield: 3.7 % pa

Consultant Mortgage Broker: Paul Martins, 01732 471616

ANY PROPERTY USED AS SECURITY, WHICH MAY INCLUDE YOUR HOME, MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE.

Get in contact with us: 0345 345 6788 or ...

Submit an enquiry
Arrange a call back