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 Market Financial Solutions 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.

FAQs

How did Market Financial Solutions deliver speed and certainty for this complex residential and buy-to-let transaction?

In this case, Market Financial Solutions demonstrated its commitment to speed by acting quickly to understand the client’s unique circumstances. The borrower needed funds secured against multiple residential and buy-to-let properties, each with varying income streams and cross charges. With underwriting starting from day one, we were able to issue terms promptly and move the deal forward without unnecessary delays. This proactive approach provided the client with confidence that when we say “yes”, we mean it.

Why was flexibility so important for the borrower’s situation?

Flexibility was key because the borrower’s income came from several sources, and the properties involved were not straightforward. Many lenders may have struggled to see the bigger picture, but we looked beyond the initial outlook. By structuring the loan to accommodate cross charges and multiple securities, we ensured the client could access the funding they required without having to split the deal across different lenders.

How do you maintain transparency throughout a complicated lending process like this?

At Market Financial Solutions, transparency means clear communication at every stage. For this deal, the borrower was kept informed from the initial enquiry through to completion. By outlining the process, fees, and any potential challenges upfront, there were no surprises along the way. This openness helps clients make informed decisions and ensures everyone is on the same page throughout what can often be a complicated transaction.

What makes your approach different from other bridging lenders?

One of our biggest strengths is that underwriting begins on day one, so any potential obstacles are addressed early. We combine speed, flexibility and genuine commitment. This allows borrowers to move ahead with confidence – even when transactions involve complicated scenarios like multiple properties and varied income streams.