Shawbrook Bank has rescued a client who was managing a large portfolio, mortgaged with a different bank.

Due to the large expense that would be incurred as a result of this change, the client decided to see if there was another provider in the market offering an alternative solution.

A long standing broker partner immediately thought this case would be something Shawbrook would consider and contacted the sales desk to talk through the details. Positively, the directors within the Limited company in question had extensive experience which is a key requirement and gave us initial comfort around the case.

Both directors were experienced within the HMO sector and had good local knowledge. Their net worth was solid and the assets that we would hold were a good spread across the buy to let and HMO markets.

The portfolio was based in Yorkshire across several postcodes and the properties were a mixture of HMOs and residential.  The tenants were a mix of professionals, UK and European workers and some DSS tenants.  We were happy that the rental for these tenants was being paid directly into our clients’ bank accounts by the local authority - a strong preference for Shawbrook when dealing with this tenant demographic.

The overall portfolio was stable and Shawbrook proceeded through to IMO within 2 working days.

Shawbrook was prepared to lend against 11 of the properties within the portfolio, but in the end it was only necessary to fund 5.  The valuations returned with good saleability and rental demand, giving our lending managers no cause for hesitation as they agreed a 10 year interest only offer for £1.26 million at 70 per cent LTV.  

Brian Walters from Newsource Commercial Finance commented: “Overall our experience on this case with Shawbrook was very positive. The legal process went smoothly and the title indemnity insurance was welcomed by the clients’ solicitor because it speeded the process up considerably."

"All in all there is nothing negative to report and from our point of view the clients’ experience was positive and has led to repeat business.”

Case factfile

Product: LRI2

Arrangement fee: 1.70 per cent

Loan to value: 70 per cent

Loan Amount: £1,260,516

Area: Yorkshire

Property Type: Portfolio of HMO and residential investment.