Adjusting to a Client’s Complex Schedule for a Commercial BTL Mortgage

Loan Amount:
£238,000

Property Value:
£450,000

LTV:
50%

Sometimes, a borrower or brokers working arrangements can threaten to slow down a deal. A client approached us for funding but, as they weren’t just based in one place, it made it difficult for our underwriter to narrow down the details.

Nevertheless, with tenacity, we managed to get everything organised. This was important too as this was a commercial BTL mortgage deal. Commercial deals can often be more complicated than their residential counterparts.

With this case specifically, we had to move swiftly to accommodate challenges with certain aspects of the deal.

Addressing the red flags

The borrower was rushed to lock in this investment and as such, our underwriter worked diligently with the solicitors involved to find the quickest way forward possible. This was a new client so we had to go through all our diligent checks, gathering what we needed along the way as questions were raised. But, we gathered paperwork that highlighted their vast experience in the market, and reassured us from an underwriting perspective.

Looking forward, we also saw that the borrowers planned to move onto long-term finance for the exit strategy. While the underwriter thought this may pose an issue initially, we discovered that the borrower had many options available to them via external lenders.

Seeing that any road bumps we were to face would be temporary, we happily delivered finance.

We have tools for complicated setups

We’re used to the logistical challenges that can emerge in this market, with UK property being as popular as it is with overseas buyers. At Market Financial Solutions, we are able to work with applicants from any country, other than those that are sanctioned.

We also can accommodate a broad range of applicant types, including those that are both prevalent in the UK, and overseas. This includes SPVs, trusts, and LLPs.

The property market may only become more complicated from here, with an autumn budget looming. Regardless of what’s on the horizon, we’ll be ready.

FAQs

Q: Do you accept owner-occupiers?

Yes, we do accept owner-occupiers, including cases where the tenant is a related party. We require a minimum of two years’ trading experience in the relevant sector within the UK. Affordability is assessed primarily on EBITDA, alongside the borrower’s overall debt-to-income position to ensure they can meet interest payments. For mixed-use properties, we can also take into account rental income from the residential units.

Q: Can commercial first-time landlords get a BTL mortgage with you?

Yes, we are open to working with first-time landlords in the commercial space. We assess each application on its merits, and as long as the property is suitable and the rental demand is strong, we can structure a mortgage that works for those taking their first steps into commercial property investment.

Q: I have a bridging loan with a different lender. Can I get a commercial BTL mortgage with you?

Yes, we can help you exit a bridging loan held with another lender by refinancing it onto one of our commercial buy-to-let mortgages. We understand how time-sensitive these situations can be and will work quickly to ensure there’s no unnecessary disruption to your plans or additional costs from delays.

Q: Do you consider clients buying property through an OpCo/PropCo structure?

Yes, we can lend to clients using an OpCo/PropCo structure. We recognise the commercial property market often involves complex arrangements, and our underwriters are experienced in assessing transactions involving operating companies and property holding companies. We will take time to understand the structure and tailor a solution accordingly.