Refinancing 20 buy-to-let properties for portfolio landlord

Area
Coventry
Capital Raised
£3.1M

Landlords with large portfolios have access to a more limited pool of lenders, but it’s our job to leverage the most cost-effective finance to free up capital for refurbishments and further purchases.

The Scenario

Our client is a fulltime professional landlord with a portfolio of 27 rental properties in Coventry, valued at £5.88M. 

He was looking to refinance 20 of them which were due to come off their fixed-rate deals, and use the equity to continue a programme of refurbishment, and allow him to purchase additional properties that might come available.  

He had a total borrowing of approximately £3M across all the properties in his portfolio.

The issues we needed to address:

  • The exposure for a lender: not all are willing to lend on a large portfolio
  • As a fulltime professional landlord, our client doesn’t have additional earned income, which some lenders like to see
  • The properties are all of a similar type: all three to four-bed houses let to students
  • Additionally, the property holdings are concentrated in one postcode of the city

The Solution

We needed to find a lender who would look at financing this size of portfolio, and who was comfortable with the fact that there was borrowing against each of the properties.

Having identified the most appropriate finance option, and gained agreement, we were proceeding with processing the applications when the lender rang to say that the particular product was being withdrawn at 8pm that evening – and we wouldn’t know if the replacement product would be at a more or less favourable rate until the following day.

All 20 applications were finalised and submitted that day, securing a competitive two-year fix for all 20 properties.

The remaining seven properties were on fairly competitive variable rates. Our client was happy to leave them as they were, having accessed sufficient finance for his present needs - with the possibility of taking up the equity in them at a later date.

Mathew Phillips

Finance Broker

Bristol

0117 959 5094

Are you in a similar situation? I specialise in bridging finance at Clifton Private Finance - I'll find the best funding solution for your property transaction.

Alex Chambers

Senior Finance Broker

Bristol

0117 403 4324

Have a similar situation? I'm a specialist in residential and investment property finance for UK and international clients. I look forward to hearing from you.

Luther Yeates

Finance Broker

Bristol

0117 244 5561

Have a similar situation? I am a specialist in residential and investment property finance for UK and international clients. I look forward to hearing from you.

James Palmer

Senior Associate

London

0203 900 4322

Have a similar situation? I specialize in development and commercial finance and can provide creative solutions for your property funding requirements.

Sam ONeill

Senior Finance Broker

Bristol

0117 959 5094

Is your situation similar? I am a bridging finance specialist at Clifton. I can find a quick, cost-effective solution for the funding you're looking for.

Robert Gibb

Senior Finance Broker

Bristol

0117 959 5094

Require mortgage or short term finance for residential or buy to let property (including HMOs and limited companies)? I have extensive experience on providing property finance solutions for UK and International clients.

Adam Arnott

Associate Director

Bristol

0117 205 0214

Are you in a similar situation? I have extensive experience in advising clients on providing creative property finance solutions. I look forward to hearing from you.

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