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: