Sometimes, we need to factor in wider circumstances and assets to get a deal wrapped up. Especially where an investor’s financial history presents certain challenges.
Where a borrower has CCJs, bankruptcies, insolvencies, or other issues in their background, they may be left with relatively few options. Fortunately, it’s these options in which we specialise.
Sonal Kavri, one of our underwriters, explained how we may find solutions for these kinds of financially challenged investors.
“While we don’t believe that borrowers should be defined by road bumps in their history, there’s no getting away from the fact they can make investing hard,” she said.
“This is especially true for more substantial purchases. For example, say a borrower finds a grade 1 listed mansion, and they want to turn it into a holiday let.
“A perfectly sensible proposition, but with a less-than-ideal financial background, it can make a sensible investment strategy hard to execute.”
This borrower, with multiple financial issues to contend with (for example), may be unlikely to raise a large deposit.
As such, we may only be able offer a purchasing loan with a relatively high LTV. Currently, our max LTV is 75%.
But, this still may not be enough to keep the deal on a solid financial course.
“Even with a high LTV, there may be a shortfall somewhere in the process,” Sonal explained.
“Here though is where we may be able to look externally for a solution.
“For instance, we could take a 2nd charge against an existing BTL property they held in their portfolio to secure the deal.
“Also, for the property they’re investing in, where we’d end up being the 1st charge lender, we could allow the borrower to utilise additional financial resources or assets to cover any remaining shortfalls – so long as it fits in with their circumstances.”
Indeed, every facet of our underwriting process is centered on matching our client’s specific circumstances and backgrounds.
We understand that no two cases are ever the same, and so every one of our loans reflects that. No matter how complicated a case may be, we will do what we can to find an equally unique solution.
