Going through the details for a challenging BTL investment

Loan Amount:
£550,000

Property Value:
£780,000

LTV:
70%

We’re happy to hear from investors with unique circumstances, and we’re well versed in overcoming some of the challenges they may present. Where complicated situations present themselves, we ensure our due diligence covers all the question marks that emerge.

One borrower with a particularly interesting background turned to us for funding for a semi-commercial property that was to be rented out. But, the borrower’s situation, along with a shortfall, threatened to slow down the deal.

To keep the deal moving, our underwriter bore into the details.

Looking at the entire picture

To start with, the underwriter focused on the borrower’s background and assets. After seeing that they ticked all of our internal checks, we then turned our attention to external concerns.

Our underwriter factored in, and found solutions for, several potential drawbacks. This included uncertainty in the borrower’s specific corner of the market, potential base rate shifts, and observable changes in values.

Despite the challenges, we were assured that the client would be able to move forward comfortably, due to a well thought-through refinance exit strategy.

Specialist finance is there for the real financial world

Borrowers with less-than-ideal backgrounds may struggle to attain property finance in the current market. Criteria has tightened in the fallout of the 2022 mini Budget and in the mainstream lending market, only the most vanilla of cases are likely to be accepted.

Fortunately, property investors aren’t bereft of options. In the specialist lending market, we’re primed to support investors who may have been turned away from the high street.

Regardless of whether borrowers have CCJs, insolvencies, or missed payments on their records, we will always give them a fair hearing. No matter the state of the wider market, we will always look for reasons to lend, rather than find excuses not to.