Shawbrook completes £3m refinance deal in Nottingham

The borrower, working through broker Empire Corporate Finance Ltd, used the deal to move away from the incumbent high street lender. The portfolio comprised six HMOs and two semi-commercial premises.

Shawbrook was able to lend on full market value after consulting its valuer panel, thereby guaranteeing the maximum amount of finance possible for the client.

The lending manager on the case had to investigate a number of outstanding CCJs, which related to unpaid bills belonging to previous tenants. The broker’s client had fully complied with all legal requests and was waiting to be cleared administratively, allowing Shawbrook to feel confident that the borrower’s portfolio and character was sufficient to provide a full mortgage offer.

During a client visit, it was established that the borrower’s HMO Licence had expired in 2014. The lending manager discovered that the customer had re-applied for their HMO Licence but the local council had a two year backlog of applications which they were processing. Shawbrook accepted this and allowed the case to proceed.

Prior to completion, it was also discovered that the redemption statement highlighted a shortfall in funding. The lending manager authorised an increased total loan amount to ensure that the shortfall was covered.

Lee Albino, business development manager at Shawbrook Commercial, said: “There’s no tick box approach – we look at the individual circumstances of the client and their portfolio – which, when combined with the guidance of an expert broker like Empire Corporate Finance enables us to achieve a positive outcome for the borrower.”

Jo Sutton of Empire Corporate Finance added: “This really wasn’t a straightforward case considering the mixed nature of the portfolio and the ongoing difficulty with renewing the HMO Licence, not to mention the tight deadline my client had to refinance away from their existing bank. Despite this, the lending team and Credit Relationship Manager at Shawbrook were pivotal in securing such a great end result.”