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The client’s established property company wished to refinance their HMO property portfolio for £1.3 million. They were looking for a variable rate mortgage product, predominantly on an interest only facility. This requirement, along with a high loan size, made sourcing the funds a challenge.
Property is classed as an HMO (House in Multiple Occupation) if at least three tenants live there, forming more than one household, and they share toilet, bathroom or kitchen facilities.
The client wished to refinance their whole HMO property portfolio to one main stream lender. They required a mortgage mainly on an interest only basis. As this creates a higher risk for the lender, stricter affordability criteria for this type of mortgage are applied. This requirement, coupled with a loan size of over £1 million, created a challenge in securing the funding.
Along with an HMO property portfolio refinance deal, the clients also wished to start building a long term banking relationship. They aspire to grow the company and extend their portfolio in future.
The clients approached us to help them in sourcing the funds for their HMO portfolio refinance. We took the time to thoroughly review the client’s circumstances, and using our specialist knowledge and relationships with a range of lenders; we found them a solution.
We utilised our relationships with a number of lenders and finance providers and approached those who have the appetite to support HMOs, with repayment on a part interest only basis. We produced some options for the client, enabling them to choose the most attractive option, balanced against the most favourable loan repayment schedule.
The client was happy with the mortgage terms presented and was able to secure the funding to remortgage their HMO property portfolio. Additionally, we opened the door for them to build meaningful finance relationships to support their future company growth.
This case study is for information and illustration purposes only. It is not an offer, or suggestion of an offer. Each mortgage case is assessed on an individual basis and there is no guarantee that the solution described here can be repeated in the future.
Please note that this specific deal may not be available to – or suitable for – all customers, dependent on their individual circumstances. The rate quoted may become out of date at short notice and may not be available at the point at which customers enquire about it. This document may not contain all the information needed for customers to make a decision and they should seek advice.
Largemortgageloans.com is a trading name of Largemortgageloans.com Ltd. A fee of up to 1.17% of the mortgage amount is payable, of this 25% is payable on application and the remainder on completion, e.g. on a mortgage of £1,000,000 the fee would be £11,700 of which £2,925 would be payable on application. The precise amount will depend on your circumstances.
Your home or property may be repossessed if you do not keep up the repayments on your mortgage. Changes in the exchange rate may increase the sterling equivalent of your debt.