A first-time landlord requires careful assessment

Loan Amount:
£170,000

Property Value:
£254,000

LTV:
65%

Generally, first-time buyers and/or landlords may need a bit more due diligence than more experienced investors. Working with seasoned borrower, who is likely a repeat customer, should make things easier for lenders.

There will be a clear paper trail to follow, along with a set precedence. Meanwhile, new borrowers present many opportunities for surprises.

We had to keep this in mind as a recent borrower looking to purchase their first BTL property approached us for support. Our underwriter, who noted a shortfall from the outset, got to work.

A covered shortfall

We worked with the borrower’s broker to determine how the shortfall would be covered. They revealed that the borrower was to cover the shortfall utilising other financial assets, for which our underwriter quickly gathered evidence.

Once we addressed this, we turned our attention to the property being invested in. We saw it was in good condition, and could likely be lettable immediately. The borrower’s repayment plans also left them with plenty of time to start covering our funding.

They also had several exit options available to them. The borrower planned to refinance with a long-term lender, and we could see that multiple providers would likely work with them on this. Given everything we saw, we delivered capital for the purchase.

Landlords will be busy this year

We expect to be kept busy by the nation’s landlords this year. Nearly three-quarters (69%) of landlords plan to grow their portfolios over the coming months, despite all the hardships they’ve had to endure.

We’re ready for this, however. Our BTL mortgages can be utilised by portfolio landlords and first time buyers alike. What’s more, our bridging loans can accommodate a range of investment plans, such as refurbishments and developer exit projects.

We’re always happy to hear from new borrowers and brokers. If you’re looking for a new lender to work with, our door is always open.