Returning offshore borrower looking to overcome tight BTL deadlines, with speed and security

Loan Amount:
£343,000

Property Value:
£490,000

LTV:
70%

Seeing borrowers return to our services always puts a smile on our faces and can often help with how quickly the loan can be processed. Of course, not every case will be smooth sailing, but our team of experts are always looking at the bigger picture to find creative solutions and reasons to lend.

We often work with buy-to-let landlords who are looking to grow their property portfolios, whether they be UK or offshore borrowers.

Looking at location, longevity, and the larger picture

Having already worked with us prior, the client came to us looking for speed and security. They were looking to purchase a new build property with intention to let it to tenants and find a long-term financial solution. However, the developers were placing increasing pressure on the client to meet a tight deadline and therefore required specialist finance to complete on time.

Located in an up-and-coming borough in London, the property held great potential for long-term capital gain. There are also several transportation links within walking distance, putting it in a great position to be in high demand from Central London based workers.

Comparing the asset to competitive properties on the market, there was a small concern that the provided rental income would not be high enough. However, our underwriter decided to take a view and consider the larger picture. Taking into account the unique features of the property, combined with the ease of accessibility to the city centre, we were confident it would push the property into the higher rent bracket.

With multiple solid exit strategies at hand, we were happy to go ahead with the deal and were able to meet the developer’s initial deadline, leaving the client to continue focusing on their growing portfolio.

Setting standards: What buy-to-let landlords need to know

With the rising base rate, there have been concerns that BTL investors would exit the market in droves. However, high demand in the rental market, and a much smaller supply of rental properties has led to rents increasing, and BTL landlords are capitalising on this opportunity by growing their portfolios. The average rental price in the UK rose by 4.7% in the 12 months leading up to February 2023. The East Midlands is currently the English region to witness the largest annual increase of 4.9%.

But, these landlords need to be considerate of the industry standards for buy-to-let assets, with the government ‘checklist’ being regularly updated and maintained, and further changes on the horizon.