First-time landlord seeking bridging finance to convert their asset into an HMO

asset into an HMO

Loan Amount:


Initial Circumstance

One of our brokers introduced us to a new client. The client needed bridging finance to purchase the property next door to their home. The neighbouring property, and the client’s home, were both Bed and Breakfast (B&B) hotels. Both assets had planning permission in place to extend on the first floor.

The borrower’s intention was to purchase the asset next door using a bridging loan. Then, using their own funds, convert both assets into Houses for Multiple Occupancy (HMOs).

The client had been managing the B&Bs for many years, providing a healthy background of industry experience.

MFS Solution

As the client had no landlord experience, we investigated the B&Bs history. They had received good reviews, and the properties were in good condition. We also had evidence that the client was aware of the area’s HMO regulations, which they would implement when it came to converting the properties.

Upon entering legal stage, solicitors flagged previous planning permission that needed evidencing. Whilst there had previously been planning permission granted a few years prior, the planning did not go ahead. Our dedicated underwriter liaised with the legal team to ensure they had all the correct documentation. Once all parties were satisfied, we proceeded with the loan.


The client needed bridging finance to build up their landlord experience, so they would be able to secure long-term finance at the end of their term. As a first-time landlord, we knew they would likely struggle to find a mortgage lender. With this case, as the buyer was converting the assets into HMOs, we were more than happy to assist in their first buy-to-let investment.

Unlike mainstream or other alternative finance companies, we’re more than happy to collaborate with first-time landlords. We do this by looking at the client’s background and property investment experience. Whilst the borrower had no previous buy-to-let experience, their background within the industry gave us the confidence and security we needed.

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