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BUY TO LET CASE STUDY OF THE YEAR

Portfolio lending

Objective
The customer had purchased 9 properties on the same street 6 months prior, using short term finance via their SPV limited company. The properties were then renovated and converted to houses of multiple occupancy (HMO).

The customer needed to refinance the properties onto traditional buy-to-let mortgages to settle the short term finance arrangement. However, the customer was considering selling 5 of the properties within the next 24-36 months with the remaining 4 to be kept and rented out.

Obstacle
Many lenders have exposure limits so Brightstar needed to factor in several lenders criteria for this customer. The properties were purchased within the last 12 months and the LTV was high at 75% when taking into account that each property was a 5 bed HMO.

Outcome
Brightstar arranged to refinance all 9 properties with 3 different lenders, with consideration for the customer’s future plans. Therefore, the properties that were earmarked for resale were placed on products with no extended early repayment charges and the remaining 5 were placed on products with longer fixed terms.