Helping a first time landlord with a multi unit freehold property purchase

Loan Amount:
£350,000

Property Value:
£525,000

LTV:
65%

So long as the borrower’s property investment plan make sense, we’re happy to lend to first time landlords. But, as they’re new to the market, we need to ensure the feasibility of the purchase as much as possible.

One of our underwriters recently had to address some of the challenges that come with a new BTL investor. A first-time landlord, who was purchasing an unusual property type (especially for a first-timer), turned to us for support.

Property types outside of the ‘typical’ residential property can become complicated investments, even for seasoned pros. To make sure this deal sat on solid foundations, we explored the client’s wider property experience and knowledge.

Exploring the borrower’s wider circumstances

We noted that while the borrower was a first-time landlord, they had plenty of experience in the property world already. This reassured us that they would be able to cope with any complications that could arise.

Also, we received copies of certain financial statements which showed they had resources at the ready, should their investment not pan out for whatever reason.

Furthermore, the borrower had a solid refinance exit strategy organised, and with a high rental yield available, we were comfortable to lend to this first-time landlord.

A unique market for BTL investors

The current rental market is filled with both opportunity and challenges. Many landlords are selling up due to rising costs but at the same time, there is still high demand for rental properties from tenants.

New entrants to the market could be incentivised to act. Fortunately, our specialist BTL mortgages can facilitate these movements quickly, and flexibly.

Regardless of whether you plan to purchase a single rental unit, or buy multiple properties on one mortgage, we may be able to provide the funding you need within mere days.