These case studies show how specialist mortgage finance has successfully assisted clients in achieving their goals.
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HMO deal in Manchester
This case is a good example of the kind of specialist deals on which Shawbrook thrives, but which are not always favoured by traditional lenders. HMOs provide attractive opportunities for experienced property investors to benefit from high rental yields, but their more complex nature often discounts them from the systems and processes adopted by more ‘vanilla’ lenders.
This particular deal took place following a raft of product changes made by Shawbrook over the summer period. Shawbrook is always looking to enhance and develop its product offering, and in this instance a property investor client was able to take advantage of the bank’s relatively new Residential Refurb product.
With the ‘Resi-Refurb’ Shawbrook lends against the after-works value on a three to five year basis. It is available for both purchases and refinance cases at 75% LTV of the after-works value. Rates are from 4.95% above three month LIBOR.
On this occasion, the Manchester-based HMO had a purchase price of £155k .Through its Strategic Partner broker, Watts Commercial Finance Ltd, Shawbrook advanced £110k on the value at the time to the client – also highly experienced in the HMO sector, and a previous recipient of Shawbrook loans. Following refurbishment, the property was revalued at £315k. Upon receipt of the valuation, Shawbrook released additional funding up to 75% LTV of this uplift in value.
Following completion of the deal, Phil Gray, Director of Watts Commercial Finance, said:
“We’re really proud to work so closely with Shawbrook Bank. They’ve been brilliant to partner with on this HMO case and the client has been delighted with the results. Shawbrook’s Senior Lending Manager David Morris went out of his way to make sure this deal went as smoothly as possible, with support on the pre-valuation and valuation.