A first-time landlord has successfully entered the property investment sector, converting two Bristol properties into Houses in Multiple Occupation (HMOs), thanks to a tailored lending approach by Redwood Bank.

After selling his stake in a co-founded company, the client aimed to venture into property investment. Despite a 20-year history of managing residential and commercial properties, his lack of direct HMO experience posed challenges with traditional lenders.

One property had an outstanding £120,000 bridging loan, necessitating refinancing for better terms and additional capital for future investments.

Brunel Bridging approached Redwood Bank, confident in its case-by-case underwriting process that considers broader business expertise. Rob Thompson, business development manager at Redwood Bank, noted: “This customer was making some life-changing decisions, leaving a successful business to start a new career in property. We were delighted to be able to provide the money he needed to be able to pursue the growth of his new venture.”

The bank approved a £499,800 loan, including a 2% fee, at a 71.4% loan-to-value ratio on a 20-year interest-only term, starting with a five-year fixed rate. The property’s positive energy performance qualified the client for a £980 Green Cashback Reward.

Marcus Robinson of Brunel Bridging praised Redwood Bank’s approach: “Redwood Bank’s flexible underwriting approach was instrumental in securing financing for our client.

“Their willingness to consider the broader experience and unique circumstances of our client enabled them to make a seamless transition into property investment.”