Kevin Beevers

Hodge Bank launches new portfolio BTL loan

Hodge Bank has launched a new buy-to-let loan for portfolio landlords.

The product has been created for professional landlords and provides one loan which deals with their entire residential property portfolio.

The specialist bank is offering a five-year fixed rate, which will switch to the standard variable rate after the five-year term.

The facility is available from a minimum of £250,000 to limited companies and LLPs with between four to 25 properties.

Combined legal and arrangement fees are £1,500 per property and interest is from 4.2%, subject to lending criteria.

The minimum required security for the product is the first legal charge over the funded property, while assignment of rental income, debenture and other corporate security may also be required.

In an exclusive interview with Bridging & Commercial, Kevin Beevers, managing director of commercial lending at Hodge Bank (pictured above), stated that the product was a flexible option for landlords.

“So, if you are a buy-to-let investor, [and] have 10 properties at 50% LTV, they're all funded individually.

“It's hard for you to then access the equity of the portfolio without revamping and disturbing all of the individual mortgages.

“So, we thought, if we could offer a facility whereby you could refinance with Hodge, put those 10 mortgages into one single facility, you're still at 50% LTV.”

Kevin added that investors could then re-gear to 60% or 70%, to release cash to buy further properties to add to the portfolio.

“And that's particularly attractive for those who want to buy something that needs a refurb — it's not in a lettable condition, [but] they can do something to it, and they have the funds to do that.”

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