Maximising a Buy-to-Let Portfolio

James, a seasoned property investor from Haverhill, was looking to purchase a substantial semi-detached property on the market for £320,000. His strategy was to convert the property into a high-yielding, six-bedroom House in Multiple Occupation (HMO). Given recent changes in tax legislation, James wanted to purchase this property through a newly established Special Purpose Vehicle (SPV) Limited Company to benefit from interest tax relief and corporate tax structures. He had an £80,000 deposit ready, requiring a £240,000 mortgage.

The Challenge

Securing a Buy-to-Let (BTL) mortgage for an HMO through a newly incorporated Limited Company is notoriously complex. Standard high-street lenders often steer clear of HMO properties due to the intensive management involved and strict local council licensing. Furthermore, because James’s SPV was brand new and had no trading history, many lenders deemed the company too high-risk. Those that did offer terms presented inflated interest rates and exorbitant arrangement fees that threatened to eat into the project’s projected yield.

The IMC Solution

James contacted our Haverhill team. Our commercial and buy-to-let specialist evaluated his business plan, the local demand for HMO rooms in Haverhill, and the property’s projected gross rental yield of over 12%.

We mapped out a strategy to approach a niche portfolio lender that specialises in Limited Company SPVs and HMO conversions. We presented a comprehensive business case that highlighted James’s previous landlord experience, the licensing plan for the local council, and detailed rental projections from a local letting agent showing a conservative gross rental income of £3,200 per month. By showcasing the strong interest-coverage ratio (ICR), we proved to the lender that the rental income would easily cover the mortgage payments, even under strict stress-testing.

The Outcome

• The Result: Secured a 5-year fixed-rate mortgage of £240,000 at 4.85% through James’s Limited Company. The 5-year term allowed James to avoid the stricter stress-testing applied to 2-year products, while lock-in rates provided long-term security.
• Client Feedback: “The buy-to-let market is a moving target, especially with HMOs and corporate structures. IMC’s Haverhill team was exceptional. They didn’t just find me a rate; they structurally aligned the mortgage application with my long-term business and tax goals. I’ll definitely be using them for my next acquisition.”