Finding solutions for credit history issues for a BTL investment

credit history issues for a BTL investment

Loan Amount:
£210,000

Property Value:
£275,000

LTV:
70%

A borrower, with a complicated background, turned to us for funding. They were unlikely to get very far with mainstream lenders given their situation.

Not only did they have missed payments in their credit history, but their personal situation could have made it difficult to attain long-term finance. We needed to find a solution for this, given that their proposed exit strategy was to refinance.

Fortunately, given our experience in dealing with these kinds of financial blips, our underwriter was able to get to work without delay.

Addressing the borrower’s financial situation

To start with, we looked at the missed payment issue. We noted that the missed payment had recently been revolved. What’s more, we saw the borrower kept up to date with all their other obligations.

Once we covered the financials, we moved on to their unique personal situation. While it may have limited their options on the high street, we found that that there were still a number of lenders who could accommodate them further down the line. Also, the borrower had a back up exit strategy options available should they be needed.

By addressing the key issues which threatened this deal, we were able to find a way forward. We issued funding comfortably.

Helping those hit by a difficult economy

Despite all the challenges faced by property investors and landlords in recent years, confidence is high for 2024’s potential. Should inflation continue to slow, we may see activity rise in the property scene over the coming months.

Nevertheless, would-be buyers have still been beset by a cost-of-living crisis, high interest rates, and political instability in recent years. It’s likely that many investors have seen their finances take a hit in some manner since at least the 2022 mini-budget.

At MFS, we understand this, and we understand that imperfect financial histories do not need to define an investment journey. So long as an investor has potential, a solid exit strategy, and sensible plans in place – we will do our best to support them.

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