Doug Hall Director 3mc Your Specialist Mortgage Desk

Topics 3mc Introduction Market Update Complex BTL Example - Complex BTL Questions Your Specialist Mortgage Desk

3mc Introduction Award winning specialist intermediary mortgage desk for BTL, Residential, Bridging & Commercial Both a packager and a mortgage club Exclusive products/criteria with enhanced commercial terms Interactive website £1.85 Billion enquiries 2015 Your Specialist Mortgage Desk

Market Update CML (Council of Mortgage Lenders) Data  £27.4 Billion – Gross lending 2014  £35 Billion (estimated) – Gross lending 2015  Up 28%  16% of the overall UK lending  40% Purchase – 60% Remortgage by volume  2016? Your Specialist Mortgage Desk

Complex BTL What makes a BTL mortgage a complex BTL mortgage? Ltd Co both Trading & SPV Holiday Let Multi unit lending on one title Remortgage prior to 6 months ownership DWP tenants Mixed use investment units Low yielding properties House in multiple occupancy (HMO) Your Specialist Mortgage Desk

Limited Company  SPV Vs. Trading  Individual to Limited Company  Limited Company to Mainstream  Current market Aldermore, Axis Bank, Cambridge & Counties Bank, Fleet, Foundation Homeloans, InterBay, Kent Reliance, Metro Bank, Paragon (Core & Premier), Precise Mortgages, Shawbrook Your Specialist Mortgage Desk

Multi Unit Lending  Types of Valuation  Consideration points for funding  Current market Aldermore, Axis Bank, Cambridge & Counties Bank, Fleet, InterBay, Kent Reliance, Metro Bank, Paragon (Core & Premier), Shawbrook, Woolwich Your Specialist Mortgage Desk

Prior to 6 months  Why remortgage  Current market with limitations  Alternative funding solutions Virgin, Mortgage Trust, Aldermore, Axis Bank, Cambridge & Counties Bank, InterBay, Paragon (Core & Premier), Shawbrook Your Specialist Mortgage Desk

HMO’s  What is a HMO  Licensing Vs. Planning  Current market Aldermore, Axis Bank, BM Solutions, Cambridge & Counties Bank, Fleet, InterBay, Kent Reliance, Leeds, Paragon (Core & Premier), Precise Mortgages, Shawbrook, TMW Your Specialist Mortgage Desk

Complex BTL Your Specialist Mortgage Desk

Complex BTL Your Specialist Mortgage Desk £115,000 £180,000

Complex BTL Example query received on the 3mc desk I have a client who purchased 2 x 3 bedroomed terraced houses 2 years ago and has since converted into 2 x 5 bed student lets. Purchased for £100,000 with gross rent of £23,800 pa. The client wishes to remortgage both properties and capital raise to fund a new purchase of a 7 bed HMO for £190,000. The client requires 65% loan to value across all 3 properties Your Specialist Mortgage Desk

Complex BTL Funding Solution Original 2 x 75% LTV purchases placed with a mainstream BTL lender who considered 5 students on 1 x AST with rental based on a single family let with the property valued on a private dwelling basis. £115,000 = Private dwelling valuation 2 x remortgages and 1 x purchase placed with Paragon Premier with rental based on all rooms with the property valued on an investment basis. £180,000 = Investment valuation 4.2% Lifetime tracker with a flat lender fee of £1,499 Your Specialist Mortgage Desk

Summary Strong growth in the BTL market New/existing lenders entering the complex sector The complex BTL market will continue to grow including market share Your Specialist Mortgage Desk