Holme Finance Bridging Solutions funds £175K bridging loan for HMO conversion



HFBS (Holme Finance Bridging Solutions) has once again demonstrated its commitment to supporting savvy investors in the property market.

The specialist lender approved a substantial bridging loan of £174,695 for a returning client, aimed at purchasing and transforming a £170,000 property into a high-yielding House of Multiple Occupation (HMO).

This isn’t the first time HFBS has backed this particular investor. With a history of successfully identifying and renovating properties for maximum rental returns, the client has proven their mettle in completing such projects within tight deadlines.

The property in question is expected to undergo extensive renovations, post-purchase, to convert it into an HMO, a venture that promises significant increases in rental income.

Upon completion, the property’s value is anticipated to soar to an estimated £300,000.

Dan Yendall-Collings, Senior Underwriter comments:

“HFBS’s decision to fund this project wasn’t solely based on the potential of the new acquisition.

The client also offered two additional Buy-To-Let (BTL) properties as collateral, ensuring a secure foundation for the loan.

This strategic move allowed us to comfortably extend the full amount required for the purchase, despite our policy against 100% funding based on a single property.”

The loan, offered at a competitive interest rate of 1.15% over a 12-month term underscores HFBS’s agility and customer-centric approach in the bridging loan market.

Although the completion of the transaction took a couple of weeks, largely due to the wait for the seller to confirm a completion date, HFBS was ready to proceed merely four days after the initial application.

This rapid turnaround time is a testament to HFBS’s efficiency, and the strong relationship and trust built with repeat clients.

The investor plans to refinance the property once the renovations are complete and the property is fully tenanted on an HMO basis, leveraging the increased value and rental income to secure long-term financing.

This transaction highlights the vibrant dynamics of the UK’s property investment sector and the critical role of specialised lenders like HFBS in facilitating growth and innovation.

It also reflects the growing trend towards maximising rental yields through HMO conversions, a strategy that, while demanding in terms of management and compliance, offers substantial returns in the right markets.