Non-homeowners refinance student let HMO

The client: Two brothers – a postman and a farmer, approached us looking to refinance one their rental properties. The brothers own two rental properties in total.

The pair planned to use the capital raised to purchase a further rental property and repay some outstanding debt.

Neither brother owns their own home. One sibling is still living with his parents, the other has moved in with a partner.

The property: A five-bed HMO let to students in Southampton. The terraced house is in the heart of the city, close to the local university and train station.

The brothers had originally purchased the property in 2008 for £160,000. A recent valuation indicated that the property was now worth in the region of £300,000.

The finance: The brothers were looking to borrow £225,000 (75% LTV). They had requested a five-year fixed rate and were looking for capital and interest repayment terms.

We approached one of the specialist lenders which is happy to accept non-homeowners. Happy with the property type and the applicants’ background experience an offer was made.

Here are the details of the deal: