Buy-to-let HMO remortgage secured after product transfer rates proved too expensive

Client profiles

Trinity Financial’s client was looking to remortgage a three-bedroom HMO ahead of their current deal ending in April. The property had an unusual layout, with no separate living room and only an open-plan kitchen/diner alongside the bedrooms. The client also lived in the flat below, which added further complexity to the case.

The challenge

This was not a straightforward buy-to-let remortgage. The existing deal with Precise was due to expire at the end of April, so there was pressure to move quickly and avoid rolling onto a more expensive rate.

The property itself was also proving difficult for many lenders. A number of lenders were uncomfortable with the HMO setup because there was no separate lounge area, and the fact the client occupied the flat below made the case more niche still.

On top of that, the product transfer options available from the current lender were expensive, with particularly high rates and fees of around 3%, so the client wanted Trinity Financial's broker to source a more suitable and more cost-effective alternative.

How Trinity Financial helped

The client came to Trinity through a referral from an existing client and asked us to find a better remortgage solution before their existing rate ended.

After reviewing the property setup and the available options in the market, we identified that many lenders would not accept the case because of the HMO configuration. BM Solutions was one of the lenders considered, but the application was initially declined because of the tenancy agreement structure.

We worked quickly to resolve this by helping get a revised AST in place on a single tenancy, which matched BM Solutions’ requirements for this type of HMO property. Once this was addressed, the case became acceptable and we were able to progress the remortgage successfully.

We recommended an interest-only buy-to-let HMO mortgage, securing a rate that compared very favourably against the client’s product transfer offer and other options from lenders including Precise, Aldermore, Moda and Foundation.

The result

Because the client was working to a tight deadline, speed was a key part of the process. By moving quickly, addressing the tenancy issue and placing the case with a lender that would accept the property, we were able to secure a much more competitive remortgage before the client’s existing deal expired.

Outcome for the clients

• Interest-only buy-to-let HMO remortgage secured
• Large buy-to-let lender accepted the case after tenancy amendments were made
• Fixed rate priced around 3.75% secured
• 1% product fee achieved
• Significantly better terms than the client’s product transfer with Precise
• More competitive than alternatives from other HMO lenders 
• Solution found for an HMO property many lenders would not accept
• Completed under time pressure before the client’s existing rate ended

Speak to a Trinity Financial adviser today

The mortgage market moves fast — and the right advice can make a significant difference to the rate and deal you secure. Get in touch with our team to discuss your options.

Call Trinity Financial on 020 7016 0790 to secure a fixed or tracker rate mortgage, book a consultation, or use our appointment calendar

The information contained within was correct at the time of publication but is subject to change. It is for general information purposes and is not advice.

Most Buy-to-Let Mortgages are not regulated by the Financial Conduct Authority.

Your mortgage is secured on your property. Your property may be repossessed if you do not keep up repayments on your mortgage