Inspired Lending delivers £2m facility for 100% funding of Nottingham commercial-to-HMO conversion

23 June 2025

Inspired Lending has completed a £2 million loan facility to support the purchase and residential conversion of a vacant commercial building in Nottingham.

The funding will enable the borrower to transform the property into six 6-bed HMOs, with the £900,000 works budget released in tranches as the project progresses.

The facility was structured to provide 100% of both the purchase price and development costs.

The initial advance was set at 70% of the current market value, with a total facility LTGDV of 65%. To support the full funding requirement, Inspired Lending took additional second charge security over three further properties owned personally by the borrower’s directors and shareholders.

The deal was introduced by a broker whose client had originally planned to raise capital on the additional securities via multiple bridging loans with other lenders. Inspired Lending consolidated the requirement into a single facility, designed to provide a simpler and more cost-effective solution.

Once complete, the borrower intends to refinance the finished property and retain it within their growing investment portfolio.

This latest deal comes off the back of Inspired Lending’s recent rate reduction in May starting at 0.89% per month, following a fall in the lender’s cost of funding. The move was aimed at supporting the growing demand from brokers and borrowers seeking competitively priced short-term finance with flexible structuring options.

Inspired Lending offers short-term loans for residential and mixed-use property projects, including purchases, refurbishments, and capital raising.

Gavin Diamond, CEO of Inspired Lending, said:

“This case reflects the kind of structured, practical lending we’re being asked to provide more often. By taking a joined-up view and using additional security, we helped the borrower access 100% funding without the complexity of multiple facilities.

“It’s an approach grounded in common sense, driven by experience, and delivered with speed, clarity and honesty. That way of working has helped us steadily grow our presence in one of the fastest-moving and most competitive parts of the property lending market.”

For more information, visit: https://inspiredlending.co.uk