Going Through the Details for a Challenging BTL Investment

Loan Amount:
£550,000

Property Value:
£780,000

LTV:
70%

We’re happy to hear from investors with unique circumstances, and we’re well versed in overcoming some of the challenges they may present. Where complicated situations present themselves, we ensure our due diligence covers all the question marks that emerge.

One borrower with a particularly interesting background turned to us for funding for a semi-commercial property that was to be rented out. But, the borrower’s situation, along with a shortfall, threatened to slow down the deal.

To keep the deal moving, our underwriter bore into the details.

Looking at the entire picture

To start with, the underwriter focused on the borrower’s background and assets. After seeing that they ticked all of our internal checks, we then turned our attention to external concerns.

Our underwriter factored in, and found solutions for, several potential drawbacks. This included uncertainty in the borrower’s specific corner of the market, potential base rate shifts, and observable changes in values.

Despite the challenges, we were assured that the client would be able to move forward comfortably, due to a well thought-through refinance exit strategy.

Specialist finance is there for the real financial world

Borrowers with less-than-ideal backgrounds may struggle to attain property finance in the current market. Criteria has tightened in the fallout of the 2022 mini Budget and in the mainstream lending market, only the most vanilla of cases are likely to be accepted.

Fortunately, property investors aren’t bereft of options. In the specialist lending market, we’re primed to support investors who may have been turned away from the high street.

Regardless of whether borrowers have CCJs, insolvencies, or missed payments on their records, we will always give them a fair hearing. No matter the state of the wider market, we will always look for reasons to lend, rather than find excuses not to.

FAQs

How will a base rate change affect my loan with you?

We offer both fixed-rate and tracker products, so the impact of a base rate change depends on the type of loan you choose. With our fixed-rate mortgages, your repayments stay the same throughout the fixed term, giving you certainty even if rates rise. If you opt for a tracker, your repayments may move in line with the Bank of England base rate. Either way, we can help you decide which option suits your needs best based on your plans and appetite for flexibility.

My case is not vanilla. Am I eligible for your loan?

We specialise in complicated and non-standard cases. Whether you are dealing with adverse credit, unusual property types, multi-unit portfolios, foreign income or time-sensitive completions, we build solutions tailored to your circumstances. Our in-house underwriting means we can consider the bigger picture and provide funding even when your situation doesn’t fit into a standard tick box.

What types of properties qualify for substantial buy-to-let funding?

We provide finance for a wide array of assets, from individual flats to HMOs, mixed-use properties and commercial assets. Our flexibility means we can support both standard and non-traditional property investments.

Do you apply early repayment charges to your buy-to-let mortgages?

We design our mortgage charges to be transparent and predictable. Early repayment charges only apply during the fixed-rate term. That means after your deal finishes and you move to the revert rate, you’re free to repay without penalties. This gives you the freedom to refinance or exit your investment on your terms and timeline.