InterBay closes complex limited company buy to let deal
22 August 2023
InterBay has completed a remortgage deal allowing a property investor to pay off their development loan on 28 units above a retail parade in Hemel Hempstead.
The loan of £4.575m was made to a limited company which is a wholly-owned subsidiary of the investor’s development company. The finance was advanced at 75% LTV, fixed at 4.99% for five years.
InterBay lent against 25 units, with the remaining three allocated for social housing.
This case illustrates InterBay’s flexible criteria – not all lenders will consider loans on properties above retail units, or loans to layered limited companies. What’s more, InterBay provided finance based on the aggregate value of the individual units, rather than a block valuation, as they are in a desirable location with excellent demand for both rental and owner occupation.
Broker Conor McGinnn at CMC Mortgages and InterBay’s specialist finance account manager Davey Gurm worked closely together to get the deal through as smoothly as possible.
InterBay has an in-house Real Estate team with extensive market knowledge, so Davey could refer the case to them at the outset, and quickly get confirmation that InterBay would consider the deal.
As the deal was worth more than £3m, the application was then subject to approval by the Bank’s internal transactional credit committee (TCC), made up of senior people from across the business, before valuations were instructed. Davey presented the case with the full support of the TCC members and the case was agreed, providing confidence and comfort to McGinn and his client upfront that InterBay would support the deal, before any money was committed to valuations.
InterBay’s underwriters were in direct contact with McGinn throughout the deal, and Davey project managed the entire case through to completion.
Conor said: “It was great working with Davey on this development exit case. We secured a very good interest rate for the client at a time when the market was extremely volatile. Although there were a few challenges to negotiate, Davey and InterBay helped get the case across the line as smoothly as possible.”
Marc Callaghan, Head of Specialist Finance, InterBay, said: “This case is a great example of our partnership approach at InterBay. By working in synch with both clients and brokers, our specialist finance account managers really help shape the case and drive the process forward to achieve that all important positive client and broker outcome.”
