Helping a First-Time Landlord with a Multi-Unit Freehold Property Purchase

Loan Amount:
£350,000

Property Value:
£525,000

LTV:
65%

So long as the borrower’s property investment plan make sense, we’re happy to lend to first time landlords. But, as they’re new to the market, we need to ensure the feasibility of the purchase as much as possible.

One of our underwriters recently had to address some of the challenges that come with a new BTL investor. A first-time landlord, who was purchasing an unusual property type (especially for a first-timer), turned to us for support.

Property types outside of the ‘typical’ residential property can become complicated investments, even for seasoned pros. To make sure this deal sat on solid foundations, we explored the client’s wider property experience and knowledge.

Exploring the borrower’s wider circumstances

We noted that while the borrower was a first-time landlord, they had plenty of experience in the property world already. This reassured us that they would be able to cope with any complications that could arise.

Also, we received copies of certain financial statements which showed they had resources at the ready, should their investment not pan out for whatever reason.

Furthermore, the borrower had a solid refinance exit strategy organised, and with a high rental yield available, we were comfortable to lend to this first-time landlord.

A unique market for BTL investors

The current rental market is filled with both opportunity and challenges. Many landlords are selling up due to rising costs but at the same time, there is still high demand for rental properties from tenants.

New entrants to the market could be incentivised to act. Fortunately, our specialist BTL mortgages can facilitate these movements quickly, and flexibly.

Regardless of whether you plan to purchase a single rental unit, or buy multiple properties on one mortgage, we may be able to provide the funding you need within mere days.

FAQs

Are first-time landlords for MUFBs higher risk applicants?

Many lenders view first-time landlords as higher risk when it comes to multi-unit freehold blocks because of the added management and financial complexity these properties involve. However, we take a more balanced approach. We assess the strength of the asset, the applicant’s wider financial position, and their ability to manage the property to enable first-time landlords to realise their opportunities.

Do I need property experience to get a loan for a MUFB?

You don’t need years of property experience to secure a loan with us for a multi-unit freehold block. While experience can be beneficial, we focus on the deal’s fundamentals, including the property’s income potential, your financial background and the exit strategy. This allows us to help both seasoned landlords and those entering the market for the first time.

Why is Market Financial Solutions’ BTL mortgage ideal for first-time landlords?

Our buy-to-let mortgages are designed with flexibility in mind, making them an excellent choice for first-time landlords. We accept a wide variety of property types, including MUFBs, and take a pragmatic view of non-standard circumstances such as unusual ownership structures or overseas income. With fast decision-making and tailored underwriting, we help new landlords secure the funding they need without unnecessary delays.

Can I get one BTL mortgage for several properties?

Yes, we can provide a single buy-to-let mortgage facility that covers multiple properties within a portfolio. This can simplify the financing process and give you greater flexibility in managing your investments. Our team can work with you to structure the loan to fit your portfolio’s specific needs, whether it includes residential, commercial or mixed-use assets.