Buy to Let Portfolio Re-Finance

Published by Fusion Finance on 4th November 2019 -

Mr and Mrs Gray had a portfolio of forty eight residential investment properties in London. The mortgages on the properties were through eleven different mortgage providers, and the portfolio geared up to an average 58 % LTV. The average yield across the portfolio stood at 7%.

The clients wanted to leverage equity from the portfolio. Using the cash released they could then carry out significant upgrades to fifteen of the units in their portfolio. They also wanted a pre-purchase facility enabling them to acquire further units at substantial discounts. As this project required a considerable amount of research, our investment mortgage partner took the case over. He conducted an audit of all mortgage redemptions on the existing finance arrangements along with an updated valuation report.

After presenting the business plan to three institutions, we negotiated a progressive re-finance at 3.5% over bank base rate. An additional enhancement to the deal was a rolling £950K ‘cheque book’ facility which allowed the clients to take advantage of future purchase opportunities. The deal added £67,000 annually to the bottom line of the clients business.