£9m borrowing for limited company portfolio landlord in London

Scenario

Our client approached us after initially liaising with multiple brokers to refinance a portion of their current portfolio of 50 properties. Although lowly geared, there was a mixture of single let, multi-unit freehold, HMO’s and non-licensed HMO properties within the portfolio.

Our process

Firstly, we reviewed the whole portfolio holistically and collaborated with the client in respect of which properties would secure us the most cost-effective finance. As the majority of properties within the portfolio were non-licensed HMO’s (small HMO’s which don’t require a license). We recommended the client a lender which would place these on their standard rates. In addition they took the full rental income into consideration (rather than the single let equivalent which is how most lenders assess these types of properties), to help navigate the lenders stress tests. This in turn secured the client market leading rates for this portion of the portfolio. 

As the first lenders maximum lending was £5million, we had to secure an additional £4m lending elsewhere. We then contacted a senior underwriting manager at a high street lender who had recently entered the limited company market. Although the case was technically outside their criteria due to exposure limits and a minor blip on the customers credit file, the lender was able to accept the case due to overall strength of the client and the portfolio. 

Result

We secured lending that saved the client over £100k in interest savings in comparison to the clients existing broker.