Will Shackleton
Senior Mortgage and Insurance Adviser
I love it when a client comes to me with a complex case! In this blog, I explain how a client was looking to build a property portfolio but had a complicated set-up with a rental property and needed a suitable Buy to Let mortgage.
The Client
Bill* came to me, looking to start to develop a portfolio of properties.
He had a couple of properties already, which he was renting out. One property in particular had a mortgage with a residential lender with no consent to let. It was considered a House of Multiple Occupation (HMO), which would require a license. Once this license was issued, the residential lender would almost certainly recall the loan. It was up to me to find a suitable lender for the client.
How We Helped
Our First Appointment: I met with Bill to chat through the details of the case and ascertained that with this particular property, the main issue was its layout. It had two flats with their own separate kitchen and bathroom, but they weren’t self-contained from the main property. This is considered ’hybrid’ to most lenders. We agreed I would go and find a lender who would provide a mortgage for this type of property.
My research: As an experienced brokerage, we have access to over 65 lenders with a range of different criteria and lending capacities. I used my expertise and connections to research which lenders would consider a mortgage for this type of property.
Top Tip
If you have a complex case, don’t assume it’s impossible to find a suitable mortgage. As brokers, we have access to solutions that you won’t necessarily find independently and our relationships with lenders’ Business Development Managers (BDMs) allow us to explain the complexities of your case and why you are a worthy candidate for a mortgage.
Through my enquiries, I was directed to one particular lender who requested certain documents to allow them to give me the best indication as to whether they could consider an application. These were sent to a senior underwriter who gave us the go ahead for a full application.
The Outcome: Often, it can be a longer drawn-out process with such lenders and circumstances, but I’m pleased to say that working with my team, we obtained an offer in four weeks and completion two months later.
It was really helpful that Bill understood the market and the complexities that can be found with property layout. He appreciated that it would take time to research the options thoroughly and that additional documents were requested to help his case. Having helped this client with a previous application, we had built up a trusting relationship and he knew I was working hard to ensure he achieved the best outcome and that he wasn’t spending fees unnecessarily.
Without us and the relationships we have with lenders’ account managers, I really don’t think Bill would have found a solution on his own as the lender we used isn’t what you would call a high street lender.
What Helping This Client Means To Me
I know Bill was massively relieved to get the mortgage completed for this property, as he had other projects in the pipeline.
The completion of this mortgage was basically the gateway to those things be able to proceed.
We have now moved on to the next property, so plans are moving forward as Bill wanted and I’m thrilled to be helping him along the way.
*Not his real name. This is a real case study, but using a fictional name to protect client confidentiality.
