Exploring our repayment options to provide breathing space for a first time landlord

Loan Amount:
£300,000

Property Value:
£450,000

LTV:
65%

The time between investing in a BTL property and finding suitable tenants can be nerve wracking. Especially for foreign national investors making their first UK purchase.

We recently had to support such a deal for a foreign national buyer with a complicated financial background. Fortunately, with a range of repayment options available to us, we were able to provide the borrower with the time and resources needed to progress their investment.

By engaging with some forward-thinking mathematics, our underwriter found solutions for the client’s circumstances.

Buying a property while also trying to find tenants for it

The client required funding to purchase a new BTL property, while they also found tenants for it. It proved challenging to tie up this plan with the client’s income set-up. This wasn’t helped by the fact that they were a foreign national permanently based overseas – however, we can deal with challenges like this with ease.

To address the potential challenges that may have emerged, our underwriter focused on the exit strategies available. Fortunately, there were multiple refinancing options open to them. Also, if the borrower chose to sell the property for the exit strategy, that would also work based on how desirable this type of property is in the market.

For even more underlying support, we allowed the client to roll up the interest for a few months, which provided the breathing space needed to lock-in a suitable tenant. Many of our BTL clients utilise this option for exactly this reason – to make improvements to the property or find the right tenants to live there. With these efforts in place, we issued funding and helped the client gain access to the UK rental market.

We have multiple options available for expanding landlords

Buy-to-let investors have faced a challenging few months recently, but there is still plenty of opportunity in the rental market. Strong rental yields can be found across the UK where landlords do their homework.

And where landlords find these opportunities, we’ll be there to help them take advantage of the. Regardless of whether your clients need a BTL mortgage to make a purchase, or refurbishment finance to spruce up a property, we’ll do our best to match them to an appropriate solution.