Moving quickly to secure a new build for a first-time landlord

Loan Amount:
£110,000

Property Value:
£143,000

LTV:
75%

Landlords may face a steep learning curve on their investment journey as they add new property types to their portfolios. This could be especially true where they’re investing in new build properties, which can present additional uncertainties.

We had such a borrower turn to us for support recently, as they planned to increase their BTL portfolio with some new builds, something they had not done before. With so much newness to this deal, our underwriter got to work with making sure the investment held plenty of long-term potential.

The pressure was on to act quickly too, as the borrowers needed to complete quickly. To make sure we could deliver funding as soon as possible, the underwriter focused on the investment’s prospects.

Helping an investor start their BTL portfolio

Working with the valuer, the underwriter confirmed the property offered good security, with excellent transport links. As such, tenants had already been secured.

This indicated that there was a lot of demand for the property. Our borrower already had a strong exit strategy in mind, but as the investment held a lot of desirability, they could also likely sell the property down the line if required.

With multiple end-goal options available to them, we issued funding quickly. This allowed them to purchase the property ahead of the looming notice deadline, and start their BTL portfolio.

BTL isn’t dead

Landlords have faced a difficult few months in the property market. A tough economic environment forced many to sell up, and now they’ve been blind sighted by an EPC U-turn.

But, despite the challenges, opportunity can still be found in the rental market. In fact, in certain pockets of the industry, some wealthy tenants may be willing to pay up to £40,000 per week for a little slice of luxury.

No matter how you target the rental market, we’ll have financial products to match your circumstances. On top of our residential bridging loans, we also have specialist BTL mortgages at the ready to support new, and professional landlords alike. To find out how we may be able to help you, reach out to us today.