An experienced landlord refinanced a recently refurbished 3-bed HMO, originally bought at auction with bridging finance. After completing the renovation, they strived to transition to a term mortgage and release equity, enabling them to move forward with their next buy to let investment.
At a glance:
- A seasoned landlord with a portfolio of 15+ properties
- Refinancing a 3-bed HMO purchased at auction
- Equity released for onward buy to let purchase
The Case:
Our long-term client, a highly experienced landlord with over 15 properties, returned to us for support with refinancing a recent acquisition. We’ve worked with them on several successful deals in the past, and this case was no different in terms of complexity and opportunity.
The property in question was a 3-bedroom HMO, which the client had purchased at auction using bridging finance. Following a comprehensive refurbishment, they were ready to refinance onto a term mortgage and release equity to fund their next buy to let investment.
The Challenge:
Refinancing a property within 6 months of purchase can be a challenge, as many lenders are cautious about lending against the new market value so soon after acquisition. However, our client had significantly improved the property, so we needed to find a lender that would recognise the uplift in value and allow them to release equity.
Another key consideration was ensuring the process moved swiftly. The client was eager to purchase their next investment property, so any unexpected delays could have prevented them from securing the property they wanted.
The Solution:
Using our strong lender relationships and extensive market knowledge, we contacted a lender known for its flexible approach to complex cases. They were willing to lend up to 80% of the new market value, even though the purchase had occurred less than 6 months prior. The only requirement needed was evidence of the refurbishment, which our client provided via a detailed schedule of works and credit card statements.
Additionally, the client’s solicitor was already on the lender’s panel, allowing both parties to work together seamlessly. This streamlined the legal process and ensured the refinance progressed efficiently from start to finish.
With a clear understanding of the client’s objectives, we successfully delivered a tailored, competitive solution that met all their requirements and positioned them for their next investment.
The Finance:
Property value: £450,000
Loan amount: £360,000
LTV: 80%
Rate: 6.09% fixed for 5 years*
Term: 25 years, Interest-only
Monthly mortgage payment: £1,846
Monthly rental income: £3,000
Gross yield: 8%
Lender arrangement fee: £3,899
*Rate as at May 2025 and subject to change.
Next steps
If you’re looking to refinance a recently refurbished property or release equity for your next investment, get in touch with our team to see how we can help.
