Immediate and Long-term Challenges Threaten to Derail a Residential BTL Investment

Loan Amount:
£425,000

Property Value:
£600,000

LTV:
70%

A borrower turned to us with both historical, and long-term challenges. Issues in their financial history threatened to limit their investment options, and potentially delay their refurbishment plans.

What’s more, uncertainty over the long-term state of the wider market also posed challenges. Given how rates have moved in recent months, the borrower wanted to explore their refinancing options in a few years’ time for the exit strategy. This may have proven tricky with their financial history.

Nevertheless, our underwriter was committed to finding a way forward for this borrower, who was otherwise a successful property investor, with plenty of experience behind them.

Utilising Our Unique Repayment Options

To start, we addressed the issues in the borrower’s financial background. By looking into the details, and gathering all the relevant evidence, we quickly determined that all the borrower’s obligations had been covered.

This helped with our deliberations for tackling the exit strategy. We saw that they should have had no problem moving onto long-term finance down the line. But, given that the borrower wanted to explore their options in a few years’ time, and they had yet to secure tenants for the property, there was medium term risk to contend with.

Fortunately, the underwriter was able to utilise our unique repayment options to provide the borrower with breathing space, and mitigate the risks. We delivered BTL funding that allowed the borrower to progress with their purchase.

Entering a Challenging Period

Financial histories are set to play a bigger part in the property market over the coming years. It’ll be up to lenders to find a way forward in the face of the looming challenges.

Some 8.38 million people have experienced adverse credit in the last three years according to Pepper Money, the highest level seen since it launched its regular specialist lending study. Mainstream lenders may become increasingly hesitant seeing such statistics.

This is where specialist lenders can play their part. Across our products, from bridging finance to Bridge Fusion loans, we’re happy to hear from those who may have less-than-ideal backgrounds.

Our underwriters can consider missed payments, CCJs, bankruptcies and more. If any of your clients are struggling with these kinds of issues, we’re ready for your call.

FAQs

How do you support overseas investors wanting to secure UK buy-to-let property?

Many overseas investors see the UK property market as a stable, long-term opportunity, but securing finance can be tricky when high street lenders impose strict residency requirements and slow processes. At Market Financial Solutions, we specialise in bridging that gap. We start underwriting as soon as we receive the enquiry, issuing indicative terms within 4 hours to give investors clarity early on what is possible. By acting decisively, we provide the confidence they need to proceed with their purchase without fear of losing out on the opportunity.

Why should overseas investors choose Market Financial Solutions?

High street lenders often turn away applications from non-UK residents due to added checks and rigid criteria. Our strength lies in our flexible approach. We look at each borrower’s wider circumstances, the asset at hand, the exit strategy and more, not just where they live. In this scenario, we took the time to understand the investors’ background and the potential of the buy-to-let property, rather than dismissing the deal outright. This enabled us to issue funding to the investor confidently.

How do you keep overseas clients informed throughout the process?

Distance shouldn’t mean uncertainty. We pride ourselves on being transparent and communicative, regardless of where our clients are based. For this deal, we set out clear timelines, explained each stage in detail, and ensured that all required documents were handled efficiently. By staying in close contact with the investors and their representatives, we avoided delays and gave everyone confidence in how the deal was progressing.