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How the numbers work.

Every figure the Deal Shaper produces comes from the assumptions on this page. Most of them you can change in the tool — these are the defaults and the rules.

Bridging (acquisition finance)

When you buy with finance, we model a bridging loan. The net loan is the lower of 90% of the purchase price and 75% of the day-one market value — the figure a lender will actually advance against.

Default rate0.90% per month (adjustable)
Arrangement fee2% of the loan, rolled up
Broker fee1% of the loan
InterestRolled up — cleared on exit
TermWorks timeline + 2 months (3 if no works)

Where there’s a refurbishment, the works are funded as a drawdown facility in 3 equal tranches, released as the works progress — interest is only charged on the drawn balance.

The refinance (the exit)

Retained deals refinance onto a term mortgage at 75% of the end value — the GDV. What counts as the end value depends on the deal: the split aggregate for a block, the post-works value for a BRR, or the commercial valuation for an HMO.

Refinance LTV75%
Product fee2% of the loan
Cash pulled out75% of GDV − what's owed to the bridge
Cash left inTotal cash employed − cash pulled out

If you sell instead: sale value − debt to clear = net proceeds, less your cash in = gross profit, before selling costs and tax.

The lender stress test (ICR)

Lenders check the rent covers the mortgage at a stressed rate, not the pay rate. We follow the standard PRA-style approach:

5-year fixed productsStressed at the pay rate
2-year fixes & trackersHigher of pay rate + 2% or 5.5%
Higher-rate taxpayer145% ICR required
Basic rate & limited company125% ICR required

The tool shows the ICR you achieve, whether it passes, and the maximum loan the rent can support — so you can see when the rent, not the value, is the constraint.

Stamp duty (SDLT)

Residential purchases use the England rates for an additional property (including the 5% surcharge). Buying 6 or more dwellings in one transaction qualifies for the cheaper non-residential rates — the tool locks this automatically.

Residential (additional)5% / 7% / 10% / 15% / 17% bands
Non-residential0% to £150k · 2% to £250k · 5% above

HMO valuations

Larger and licensed HMOs are usually valued on income, not bricks and mortar: net rent ÷ valuation yield. A lower yield means a higher value — 8–10% is typical, and we default to 9% (adjustable). Smaller HMOs are valued as a normal house.

Net rentGross room rents − running costs
Default running costs30% with bills included, 20% without
Default valuation yield9.0% (adjustable 6–12%)

Where the data comes from

The research step pulls live data by postcode rather than relying on your guesses:

  • HM Land Registry Price Paid— actual recorded sales (England & Wales).
  • The EPC register — floor areas and energy ratings for real properties at the postcode.
  • Homedata — a modelled value estimate (AVM), comparable sales, current listings, price trends, schools, crime, broadband and flood risk.

Lender quotes shown in the financing screens are illustrative, not live offers. Everything here is for research — not financial advice. Always do your own due diligence.

Happy with how it’s worked out? Put it to work on a deal.

Open the Deal Shaper