Client saves £55,000 per year on their HMO Property Remortgages
- David Manklow
- Nov 13, 2024
- 2 min read
Updated: Apr 10
Our Property Finance Broker, Thomas Brogan, recently assisted a client, in securing a more sustainable financing solution for their two HMO properties.
The client was paying a staggering 10% per year on two mortgages, with monthly payments exceeding rental income. This meant they were using personal funds to cover shortfalls - a position no property investor wants to be in. Both mortgages were at their debt servicing max, which made refinancing a challenge.
Tom worked closely with the client to secure a £1,181,432 refinance loan against a combined property value of £1,590,000. After navigating complex lending criteria, he found a lender who could meet the affordability and leverage requirements.
Both HMO properties were successfully remortgaged onto a 5-year fixed-rate deal—at less than half of the previous interest rate! This lowered the client’s monthly payments by approximately £4,600, saving them £55,000 per year and turning their properties back into profitable assets.
Thomas Brogan - Approved Finance Property Broker commented:
"When the client came to me, they were facing high interest rates that were eating into their profits, forcing them to cover the difference out of pocket. My goal was to find a solution that made these properties profitable again. By securing a fixed rate at less than half their original rate, we cut monthly costs significantly, transforming a difficult situation into a sustainable investment. This is why finding the right finance is so important for property investors."
This case is a testament to how the right broker, with the right network and expertise, can turn a financial burden into a financially secure investment.
If you’re struggling with high-interest HMO mortgages, get in touch with Thomas today for a tailored finance solution.
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