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Lack of obvious experience in the property market can count against a landlord looking to secure funding. But, at Redwood Bank their expert team assesses each case individually allowing them to consider all relevant experience even where it is not immediately apparent. This approach benefited a first-time customer who came to Redwood Bank through a Bristol based broker called Brunel Bridging Ltd.
A businessman, who had recently sold his stake in a successful company he had founded 10 years previously, was looking to establish himself as a property landlord. He had bought two properties in the Bristol area to convert into HMOs.
One of the properties had bridging finance with £120,000 outstanding. He was keen to raise capital to be able to pay off the expensive bridging loan and have sufficient funds to then be able to use for future investments.
Brunel approached Redwood, knowing that its approach to individually assessing each case meant its team of experts would consider their clients’ wider business experience.
Despite the client's limited direct HMO experience, his extensive 20-year background in managing residential and commercial properties, combined with his high-net-worth status and collaboration with reputable agents CJ Hole, met Redwood Bank's criteria.
The Bank approved a £499,800 loan (inclusive of a 2% fee) at a 71.4% Loan-to-Value (LTV) ratio on a 20-year interest-only term, commencing with a five-year fixed rate. Additionally, the property's EPC rating of C qualified the client for the Green Cashback Reward, amounting to £980.
BDM Rob Thompson, who has an excellent relationship with the broker, said: “This customer was making some life-changing decisions, leaving a successful business to start a new career in property. We were delighted to be able to provide the money he needed to be able to pursue the growth of his new venture.”
Marcus Robinson, Brunel Bridging Ltd, said: “Redwood Bank's flexible underwriting approach was instrumental in securing financing for our client. Their willingness to consider the broader experience and unique circumstances of our client enabled them to make a seamless transition into property investment.”