Providing a way forward for a BTL investor with missed payments

Loan Amount:
£381,000

Property Value:
£270,000

LTV:
70%

Refinancing can be tricky for any property investor when the economic climate is uncertain. But, when you add in missed payments via a borrower’s background, it can add a whole new level of difficulty.

A borrower required refinancing capital to cover an existing facility, and progress with their plans. However, as we reviewed their details, we found a financial issue in their background.

Our underwriter had to address this problem, and find a way forward for the borrower. What’s more, they had to also make sure this issue didn’t derail their exit strategy.

An optimistic outlook

During our initial review, it emerged that the borrower had missed financial payments in their background. This threatened to slow down the deal. But, our underwriter dug deeper into the borrower’s details.

It turned out that this missed payment had been resolved and we could accommodate the borrower’s potential adverse credit record within our remit. With this addressed, we turned to the refinancing exit strategy.

Even with the payment issue, we saw the borrower had several external lenders they could refinance with down the line. What’s more, as the property already had tenants in situ, bringing in immediate income, we felt assured that this investment held long term stability.

We’re likely to see more of this

Missed payments threaten to hold back borrowers for the foreseeable future. For mortgage holders specifically, missed payment rates have recently returned to levels seen at the height of the cost of living crisis¹.

Seeing these missed payments on an applicant’s records can make lenders nervous. This may hinder a borrower’s ability to attain finance for their investment.

Fortunately, specialist lenders like MFS are primed to support borrowers with less-than-perfect financial records. We take a holistic approach to underwriting, meaning we’re able to help those with missed payments, CCJs, bankruptcies and more in their records.