Case Study: £1.25m Refinance Secured on a Block of 12 Flats Using NEW 3 Year Tracker Product

Overview

Positive Commercial Finance have had a  £1.25m refinance package agreed for a professional landlord on a block of 12 self‑contained flats, utilising a lender’s newly launched 3‑Year Tracker at 1.24% above Bank of England Base Rate.

The updated product criteria allowed us to secure 75% LTV, interest‑only terms, and a competitive 2% arrangement fee — all supported by the block’s strong rental yield.

 The Property

• Block of 12 self‑contained residential flats
• Valuation: £1.75m
• Tenure: Fully let
• Rental Profile: Stable, diversified tenant mix

The client wanted to refinance to release capital for future acquisitions.

The Result

✔ Loan Amount: £1,250,000

✔ Product: 3‑Year Tracker at 1.24% + BoE Base Rate

✔ Structure: Interest‑Only Commercial Mortgage

✔ LTV: 75% (with arrangement fee added to loan)

✔ ERCs: 3%, 2.5%, 1%

Why This Product Stood Out

The lender’s new tracker is particularly attractive for investors with larger blocks because it offers:

• Higher leverage with a modest yield requirement
• Flexible interest‑only terms
• Competitive margin at 1.24% + BBR
• Support for larger loans (up to £10m per block)
• Strong portfolio capacity (up to £20m total exposure)

This case demonstrates how product updates can unlock opportunities for landlords — especially when paired with expert packaging and lender negotiation.