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.”
