Almas Uddin
Founder and Mortgage Advisor
23 Feb 2021
Client Background: Our client was a British expat currently living in China for business purposes. He had been dissatisfied with the offered remortgage lending rates from a previous provider due to his residential status overseas and the need for HMO borrowing.
Property Information: The opportunity was to remortgage a semi-commercial property in southeast London with steady, attractive rental returns and the potential for significant appreciation.
Downstairs, the property housed an existing commercial tenant (a well known, national takeaway food franchise). Upstairs, the property comprised an HMO with six individual residential units.
Financial Requirements: To secure an interest-only mortgage at the most competitive rates available. The client wished to take out a mortgage against the property to release the equity required for a further investment project.
The Revolution Brokers Solution:
Revolution Brokers consulted with the client to understand his residency status and any risk factors this might present. He is a British national with a single asset investment in the UK requiring remortgage finance to release equity from an existing semi-commercial property asset. Our client needed to raise the capital necessary for a further investment portfolio expansion.
Given the nature of the property and that the client resides overseas, Revolution worked on creating a compelling application. We identified the mitigating factors to override the inherent risk perceived by a lender when considering an HMO, a semi-commercial property, and an international expat client.
We were able to secure a fantastic rate, particularly for expat lending, and raise the capital required to enable our client to move forward with his investment plans.
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Property Valuation:
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£1.2 million
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Total Mortgage Borrowing:
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£425,000
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Loan to Value Ratio:
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36%
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Negotiated Interest Rate:
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2.8% plus base rate
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Mortgage Term:
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Five years
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Monthly Payment Value:
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£1,027 interest only
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Arrangement Costs:
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2%
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Rental Income Achieved:
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£72,000 per annum
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