The clients approached us seeking help securing funding for their first buy-to-let property through their Ltd Company. They were both self-employed and were looking to purchase a property in a converted office block which was, at this point, changing the guarantees on the building. This is not permitted by many lenders and of those that would consider this type of mortgage, many of which will want the building to be predominantly owner-occupied, which this was not.
The aim was to secure market-leading funding of 75% loan to value at a rate of 3.09% which was the most competitive in the marketplace. We first had to convince the lender to consider the application as it was outwith their standard lending criteria.
We were already aware of the difficulties that we could face trying to convince many of the mainstream lenders to accept this type of case so we approached a specialist lender who was likely to be more flexible.
At first, we encountered resistance from the lender for several reasons including that the property had a high investment purpose exposure and the building was transitioning through a change in company who were providing the guarantees. The clients were also seeking to secure the mortgage as quickly as possible and so this also had to be taken into consideration.
However, we consulted thoroughly with our clients to gain a comprehensive overview of their background and from that, we were able to convince the lender that the client’s profile was sufficient to ensure that the mortgage was fully affordable and at a lower risk through the Ltd company.
“The lender was able to instruct the valuation and produce an offer after just 48 hours.”
We were able to quickly complete the application once we had received final approval and the lender was then able to instruct the valuation and produce an offer after just 48 hours leaving the client wholly satisfied with the entire process.
