Are you using private finance to grow your HMO property business? And are you combining that with high street or bank finance? If so, that's great! In principle, there's nothing wrong with this approach. However, if it's not set up or managed correctly, it can lead to some serious issues, especially when it comes to refinancing or trying to repay your private investors.

In this episode, Ellie Broadhurst, our specialist mortgage broker will discuss the potential consequences of getting this wrong. And trust me, it’s easy to overlook or mismanage certain aspects. In fact, a lot of what we'll cover today may be things you’re not even aware of—yet they can be major red flags for a bank when it comes to refinancing. If you make these mistakes, you could find yourself in a difficult situation, unable to pay back investors or refinance your property. If you're using private finance, this episode is crucial for you. 

Topics covered in this episode:

• 04:57 - Understanding the Risks of Private Finance in Property Investment
• 10:03 - Mitigating Risks and Ensuring Due Diligence
• 14:57 - The Importance of Source of Funds and Investor Background Checks
• 24:10 - Realistic Cost Assessments in Refurbishments
• 31:35 - Managing Timelines and Expectations
• 36:13 - Market Predictions and Future Trends

Contact Ellie here, if you’re interested in discussing your HMO mortgage and finance needs.

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