Smaller loan sizes don’t always get the care and attention that they deserve. Lenders generally avoid them, and brokers generally seek larger transaction amounts – ultimately it is the same amount of work for a lower return. As such, those who do operate in this area usually charge more to counteract this.
Our MiniWings focus product was designed to fill this malfunction in the market. Providing a product that targets smaller loans (£50,000 to £250,000) at competitive prices; no minimum fees and interest margin requirements. This product is perfect for stretched LTV purchases and small conversions.
Albatross was approached by a returning customer who had agreed a below-market-value purchase of a residential property in a university town. They already owned several similar properties on the road which were operating as HMOs. This particular asset was in a semi-derelict state, but the customer intended to carry out a full PD conversion to HMOs to support the student living requirement in this area. The client agreed a purchase price of £65,000 and needed as close to this as possible – he funded the works himself. We offered the client a £59,000 which was 75% LTV against the OMV and 91% against the purchase price. The client has now carried out the works himself and benefiting from a GDV closer to £170,000.
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