HMO Capital Raise Remortgage for Large Portfolio Landlord

The Client: An experienced portfolio landlord with thirteen buy to let properties, all owned in his SPV limited company.

The Property: A four-bedroom HMO, located in a rural area near Birmingham. The location would give tenants easy access to the city centre and the surrounding countryside.

The Finance: Our client wanted to raise capital for a new buy to let investment by remortgaging his existing HMO property. He was looking for a competitive 75% LTV HMO limited company mortgage to maximise yield.

The Challenge: As a portfolio landlord, there would be several buy to let lenders which we knew would not consider his application, especially as he has over ten background properties. Furthermore, our client approached us during the second lockdown, when many buy to let mortgage lenders were reviewing their pricing strategy. With rates constantly changing, it would be challenging to secure a competitive HMO buy to let mortgage, especially for a large portfolio landlord.

The Solution: As an independent, whole of market mortgage broker, we have access to many specialist buy to let lenders. By researching available HMO mortgages offered by lenders that would accept a landlord with a buy to let portfolio of this size, we were able to secure a highly competitive rate! Delighted, our client is now planning his next buy to let purchase using the funds raised from this remortgage. Here are the details:

Property Details

Property value: £120,000

Loan amount: £90,000

LTV: 75%

Rate: 3.44% two-year fixed

Term: 25 years, interest only

Mortgage payment:  £263 per calendar month

Lender arrangement fee: 2% (£1,800)

Rental income: £900 per calendar month

Gross yield: 9% per annum

Application: SPV Limited Company

 

10th February 2021