Supporting an Entrepreneurial Property Investor as They Expand Their Portfolio

credit history issues for a BTL investment

Loan Amount:
£900,000

Property Value:
£1,800,000

LTV:
50%

Many of our borrowers have unique backgrounds that while allowing them to become successful as property investors, still add complications when it comes to lending assessments. One such borrower who had built their success via multiple industries turned to us for support.

We could see the borrower was clearly entrepreneurial and fiscally responsible. But, given just how business-related their history was, there were some understandable challenges to overcome with their background, which included adverse credit issues.

Fortunately, our underwriter jumped on this, working with the borrower’s accountant to gather relevant information and paperwork. With this covered, we could focus on the investment at hand, and the exit strategy.

Exploring the details and adding security

The borrower had a robust plan to refinance with us, and use raised funds to purchase another asset. However, the scale of this plan meant the funds could be used for multiple costs and obligations. We gathered a detailed breakdown of the plans to ensure everything was accounted for.

We then focused on the exit strategy. The borrower planned to sell their investment property to cover our loan. We worked with the valuer on this who confirmed a realistic timeframe for a sale, which would easily fit in with our circumstances.

To add additional security to the deal, we added conditions that had to be met before we could deliver finance. With everything accounted for, we were able to help the borrower progress.

The economic picture is about to get more complicated

Even the most sensible and successful businessman will face challenges at some point of their career, which may leave a mark on their record. With an Autumn Budget approaching, and tough new legislation in the property market, the likelihood of this will only rise.

Still, the specialist lending market is ready for this. Market Financial Solutions factors in the wider economic picture when assessing an application. We embrace flexibility and realism in the face of challenging circumstances.

FAQs

How can specialist lenders support borrowers with complex or business-oriented backgrounds?

Specialist lenders like Market Fianncial Solutions understand that entrepreneurial borrowers often have multifaceted income streams or past credit challenges. In such cases, underwriters collaborate closely with the borrower’s accountant to gather the necessary documentation, such as business accounts and explanations for any credit issues, to comprehensively assess the lending case and focus on the viability of the investment and exit plan. This flexible, pragmatic approach can help address the complexity of a borrower’s financial profile and make lending possible.

Can I refinance with credit history issues?

Yes, we can assist borrowers looking to refinance even if they have faced credit challenges in the past. We understand that adverse credit can occur for a variety of reasons and does not necessarily reflect your current ability to service a loan. Our underwriting team takes a pragmatic approach, focusing on the asset and the exit strategy rather than relying solely on credit scores. This enables us to support clients with complex circumstances who need to refinance quickly.

Do you also accept overseas investors and companies as applicants?

We regularly work with overseas investors and corporate entities looking to secure funding in the UK property market. Whether you are a non-resident individual, an offshore company, or an international trust, we can structure lending solutions to suit your requirements. Our experience in handling cross-border transactions ensures we can navigate more complex ownership structures and timelines.

In a tightening economic and regulatory environment, how do you remain accessible to investors?

As economic conditions evolve, such as following budget announcements or the introduction of tougher property market regulations, traditional lenders may become more cautious. Specialist lenders like Market Financial Solutions, however, factor in the broader economic picture, embracing flexibility and realism. We can provide tailored solutions that account for changing market dynamics and the potential for past financial hiccups, helping even entrepreneurial borrowers to continue investing and growing their portfolios.