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Here is how we helped a first-time buyer purchase a four-bedroom HMO with a specialist mortgage solution whilst receiving income from outside the UK, despite limited lender options.
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The Client’s Situation
The client approached us looking to purchase their first investment property: a four-bedroom house in multiple occupation (HMO).
As both a first-time buyer and a first-time landlord, securing a mortgage presented some challenges. The client also earned their income outside the UK, further restricting the number of lenders able to consider the application. They were still a UK resident.
With the right specialist lender, however, we were able to find a solution that enabled the client to take their first step into property investment.
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The Challenge
There were two key challenges to overcome:
- First-time buyer and landlord: Many specialist HMO lenders require applicants to have previous experience as a landlord, making it difficult for new investors to enter the market.
- Overseas income: The client’s income was earned outside the UK, which further limited the lenders able to consider their circumstances.
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Our Solution
We had access to a specialist lender who can consider first-time buyers purchasing a small HMO, and secured a mortgage offer that enabled them to proceed with the purchase.
We opted for a 2-year fixed, so in 2 years the client would have landlord experience and we can explore refinancing options with a wider range of lenders, potentially securing a more competitive deal.
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The Result
We successfully secured the mortgage, enabling the client to purchase their first four-bedroom HMO and begin their journey as a property investor.
The mortgage was structured as follows:
- Property: Four-bedroom HMO
- Purchase price: £165,000
- Net loan amount: £123,750
- Loan-to-value: 75%
- Product: 2-year fixed rate at 4.98% with a 2% arrangement fee
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How can Advocate Finance help?
This case demonstrates the importance of understanding a client’s individual circumstances and identifying lenders whose criteria align with their needs.
At Advocate Finance, we work with specialist lenders to help property investors navigate complex lending criteria and find suitable finance solutions.
We provide a FREE assessment on all our services.
Please contact me directly for more information, or use the Get in Touch With Us Today feature at the bottom of this page.
