Redwood Bank secures funding for experienced landlord

An experienced landlord has secured funding from Redwood Bank to enter the house in multiple occupation (HMO) market for the first time.

The investor, a businessman who recently sold his stake in a co-founded company, aimed to convert two properties in Bristol into HMOs.

Despite no previous HMO experience and an outstanding £120,000 bridging loan on one property, the investor’s 20-year experience in managing residential and commercial properties positioned him well.

Brunel Bridging Ltd approached Redwood Bank, which considered the client’s broader business expertise.

Redwood approved a £499,800 loan with a 2% fee, at a 71.4% loan-to-value (LTV) ratio, on a 20-year interest-only term beginning with a 5-year fixed rate.

The property’s strong energy performance qualified for a Green Cashback Reward of £980.

Rob Thompson (pictured), business development manager at Redwood Bank, said: “This customer was making a significant life change, moving from a successful business into property investment.

“We were delighted to provide the funding needed to support the growth of his new venture.”

Marcus Robinson of Brunel Bridging Ltd said: “The flexible underwriting was key to securing financing for our client.

“Their willingness to assess broader experience and unique circumstances made for a seamless transition into property investment.”

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