Helping a landlord to purchase their first investment property

Client Background

Our client was a first-time landlord who had remortgaged their residential property to raise the deposit for their very first buy-to-let investment. After a lengthy property search, they had finally found the one they believed offered the best long-term opportunity.

Challenges Faced

The property presented several challenges from a lender's perspective. It was located next to a Chinese takeaway, opposite another takeaway and close to a petrol station, all factors that can significantly reduce the number of lenders willing to consider an application.

As a first-time landlord, the client also required a 75% loan-to-value mortgage, again slightly reducing lender appetite.

How We Helped

The client was initially unaware that the property's location could limit lender appetite. Rather than submitting applications that could result in unnecessary costs or multiple declines, we carefully assessed the options available.

Our first approach was to identify lenders that would assess the case without charging upfront application or valuation fees, ensuring the client wasn't financially disadvantaged if the application proved unsuitable.

Although our initial submission was declined, we didn't stop there.

We revisited the market, identified a more suitable lender and, before submitting the application, engaged with their in-house valuers to establish whether the property would be acceptable. This gave us confidence that the case met the lender's criteria before a formal application was made, helping to avoid another unnecessary decline.

The Outcome

We successfully secured a 75% loan-to-value mortgage on a two-year fixed-rate product, enabling the client to complete the purchase of their first buy-to-let investment.

This case demonstrates the value of understanding lender criteria and taking the time to place applications with the right lender, particularly where a property falls outside standard lending criteria.