Part time landlords purchase HMO through SPV with 85% LTV

A couple, who are existing clients, approached us for helping in financing the purchase of an HMO in the Midlands with a deposit of only 15%. Whilst they both work full time in the fashion industry, they also own three rental properties, two of which are owned in an SPV limited company and one is owned personally.

In addition to the fact that very few lenders offer 85% LTV, the couple do not own their own home and only have just over a year’s landlord experience, so finding a provider that would be willing to lend could have proved challenging. 

We managed to overcome these challenges by sourcing finance from a specialist lender which offered the following terms:

Property value: £287,500

Loan amount: £244,375

LTV: 85%

Rate: 5.09% 2 year discounted tracker

Term: 25 years interest only

Lender arrangement fee: 2% of loan amount (£4,888)

Rental income: £1,900 pcm

Mortgage payment: £1,037 pcm

Gross yield: 7.9% pa

Consultant: Gavin Elley

Consultant tel: 01625 416398

9th September 2015