Bridging loan for an HMO conversion

Dan Gracie

Specialist Lending Director

The Requirement

Our client had identified a three-bedroom house that he wanted to convert into a six-bedroom House of Multiple Occupancy (HMO). This would be his fifth conversion and he had now developed a format that worked. Once converted, he would retain, refinance and rent out the HMO, raising enough capital on the refinance to fund the deposit for the next purchase.

We knew the client’s pattern well as we were already looking after one of his refinances to exit a similar bridging loan onto a long-term HMO mortgage and were helping him to raise the deposit for this next purchase.

The Solution

We engaged with a bridging lender who was able to price surprisingly well, despite the conversion requiring structural work, planning permission, HMO licences and building regulations – none of which had yet been achieved. The lender was happy to keep pricing low due to our presentation of the client’s experience and his well-tested format of buy > bridge > convert > refinance > rent.

We worked with the lender and the developer to select a suitable valuer and assess the refurbishment works schedule & costings, achieving a fast loan offer and devising a suitable plan for a bridging loan exit mortgage for when the conversion was complete.

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Brian M.

“We are so thankful we were referred to Dan and the Panthera team for our mortgage process. Our plans to purchase a home in the UK moved a little quicker than we planned, but Dan's knowledge and support made the process smooth and effortless for us. Dan and Rhiannon had the best communication and provided updates quickly for our mortgage to be approved as soon as possible. We are so grateful for Panthera Finance and look forward to our new home!!”

Jason & Haley S.

“Working with Anthony at Panthera on mortgaging and remortgaging several times on property has always been seamless. Deeply knowledgeable, he listens to what I need and works extremely hard and quickly to get the right product. ”

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