Mortgage offer within 4 days on £1.3m 11-bed HMO
The client: An existing client of Mortgages for Business approached us looking to refinance one of his large HMO rental properties. The finance was being raised as part of a larger restructure to acquire an additional property for his portfolio.
The client is a full-time landlord with 25+ properties in his portfolio.
The property: A fully occupied, 11-bed, licensed HMO located in North West London owned personally by our client. The property was last valued in excess of £1.3m.
The finance: In total the client was looking to raise £733,000. There were a couple of challenges which, when combined, ruled out almost all buy to let lenders:
- The HMO has 11 bedrooms – too many for even some of the specialist buy to let lenders.
- Portfolio landlord status – the client is a full-time landlord with a large portfolio valued at just shy of £25m.
We immediately thought of a new commercial lender with which we have semi-exclusive access. In fact, currently, only five brokers are working directly with this lender which can be relied on for its flexible, common sense approach to underwriting complex deals. It caters to landlords looking to invest in non-standard residential property, will consider very large HMOs and portfolio landlords with considerable borrowing. (It is also a good choice for those looking to diversify into mixed-use investments, such as buy to lets above shops and offices. Please get in touch for more information).
The application process: We discussed the case with the lender’s business development manager who agreed that both the landlord and the HMO was a good fit for their borrowing criteria. So, we helped the client fill in and submit the application together with a whole raft of supporting documentation which included bank statements, property portfolio schedule, a statement of other assets & liabilities together with the usual proof of ID, address and income.
Just four days later, the client was extremely impressed to receive a formal mortgage offer. The case is expected to complete shortly. Here are the details: