Refinance of HMO development for Ex Pats with non-standard payment history

Deal Structure

60% Loan To value

Interest Rate 5.5% Over Base

2% Arrangement Fee

20 years term.

Deal Summary

A Limited Company was owned by two expats both living and working on opposite sides of the world. The company had bought and developed a large house in the North East, transforming it into a high-quality HMO property with 6 rooms.

The property was valued at £350k and the clients were looking to recoup the money they had spent on the project, so they could move onto another similar project they had targeted in the same area.

As well as both being Ex Pats, the payment history on a previous loan was patchy and whilst the loan was up to date, there was evidence of regular late payments.

We managed to find a lender who could get comfortable with the Ex Pat situation along with the detailed explanation and reasons we gave for the late payments.

We arranged a Commercial Mortgage facility of £210k, at 68% Loan to value, which was more than sufficient for them to move on to their next project.