Our client had owned one buy-to-let property for 12 months and was now looking to purchase an HMO to maximise his rental income. His income was around £16,000 and he currently lived with his parents. 

Property consisted of 5 bedrooms each with a kitchenette and en-suite facilities, a shared kitchen and large bathroom but no shared living space. 

It was a large, 2 storey, leasehold flat above a parade of shops on a small high street. No takeaways or pubs immediately next to the property but present at the end of the high street. 

The client planned to let the property to students. 

Solution provided:

Many lenders were put off by the commercial elements and lack of shared communal space. The property was deemed unsuitable for family letting. 

The case was discussed with several lenders and proceeded with one who later declined the case following the valuation. 

We promptly placed it with an alternative lender using the existing case details and obtained a mortgage offer. 

The process from mortgage application to offer only took around 5 weeks despite the initial declined valuation. 

Product chosen:

Fleet (HMO range) - 3.39% 2 year fixed with a 1.5% lender fee

Monthly payment: 

£537 pcm (with lender fee added to the loan)

An experienced landlord has been changing from personally owned properties to limited company owned properties over several years.

One of his older properties was coming to the end of its mortgage term so he decided to have his limited company purchase the property from his personal name.

The large amount of equity held was to be used as the effective deposit.

The client’s income is mostly drawn from his let properties as he had retired from employment some years previously. His net income totalled about £20,000 (including a small pension). He is 77 years old.

Solution provided:

We discussed the scenario with a number of lenders. The client’s low income was not a problem given his letting experience and substantial equity.

Some lenders were offering specific portfolio products which had fee free incentives, minimising his up-front costs and keeping his mortgage balance down.

Product chosen:

Foundation Home Loans - portfolio product for limited companies.
3.39% 5 year fixed rate with no lender fee, no booking fee and a free valuation.

Monthly payment: £423 pcm