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Portfolio landlord refinances 6-bed HMO at 85% LTV

The client: A full-time landlord returned to Mortgages for Business looking to raise capital on one of his investment properties. He planned to use the capital raised as a deposit for a further buy to let property.

The client already owns 13 properties, all held within his SPV limited company.

The property:
A six-bed HMO in Luton let to flight attendants. The client had been managing the property for over two years.

The finance:
When the client approached us, the property – valued at £310,000 had an outstanding mortgage balance of £190,000. To purchase his next property, the client wanted to raise a further £73,500 taking his total mortgage to £263,500 (85% LTV).

The application process:
There were numerous factors which meant we would need to source finance from a specialist lender.

85% loan to value The majority of buy to let lenders will only go up to 75% LTV
Limited company status – Many mainstream lenders do not deal with limited company applicants
HMO property Mainstream lenders tend to avoid larger HMO property. Some mainstream lenders avoid HMO property altogether

Having worked with the client before, we only need to request a copy of his recent bank statements and an updated version of his portfolio spreadsheet.

We submitted all the necessary documentation to one of the specialist lenders. Within three weeks an offer was made.

Here are the details of the deal:

Property Details

Property value: £310,000

Loan amount:
£263,500

LTV:
85%

Rate:
4.79% 3 year fixed rate

Term:
25 years interest only

Lender arrangement fee:
£6,587 (2.5% added to loan amount)

Mortgage payment:
£1,043 pcm

Previous Mortgage Payment:
£770 pcm

Consultant: Charlie London, 01732 471604


Looking to raise capital?

We offer a FREE property portfolio review service. We review your options and let you know if you can borrow more or save on your monthly repayments. Unless you go ahead with a refinance we won’t charge you a penny!

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

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Mortgages for Business Ltd is authorised and regulated by the Finance Conduct Authority (No. 313537) to transact regulated mortgages. We are a credit broker, not a lender. We work with the whole of market in sourcing a lender for you; we may receive a commission from the lender, and this amount varies between lenders. The FCA does not regulate some investment mortgage contracts. Mortgages for Business Ltd is a founding member of the National Association of Commercial Finance Brokers, the body that promotes best practice within the commercial finance industry. Telephone calls may be monitored or recorded for training purposes.

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