£1m remortgage on multi unit HMO
The Client: A full time landlord and property developer looking to grow his property portfolio. The client currently owns two investment properties – one vanilla standard BTL and one high value multi-unit.
The Property: A 4 storey terraced house in North London, converted into two fully converted self-contained maisonettes in 2015. The units are used as two 4-bed HMOs let to professionals. Having large bedrooms and separate gardens for each unit, as well as the demand for property in the area allowed the client to receive a generous rental income.
The Finance: The existing loan of £1,000,000 was coming to the end of its initial rate. The client was keen to find a new competitive 5-year fixed rate and wanted to raise a small amount of capital to put towards his next investment.
The client’s existing lender was no longer taking on new business and as the client only receives rental income as his income source, the case was in need of a specialist lender. The client approached Mortgages for Business for help in finding a new lender that offered competitive rates with a low arrangement fee.
The Application Process: When searching for a suitable product we needed to find a lender who accepted:
- Multi units
- High loan amounts
- Rental income as sole source of income
We asked the client to provide us with three months proof of income, proof of ID and proof of address to support his application. We then searched the whole of the market to find a lender. After submitting the application to the lender, an offer was made within a month.
The client was very pleased with his mortgage offer and the swift application process. We are now working with him on the purchase he made with the capital raised from his remortgage.
Here are the details: