Lockdown Purchase for Buy to Let Portfolio Landlord
The Client: A professional landlord with a buy to let portfolio of seven mortgaged properties.
The Property: Situated in the East Midlands, this five-year-old, one-bedroom detached house was close to local amenities in a small town and on the outskirts of a larger city.
The Finance: The client required finance to purchase her eighth buy to let property. She was looking for an interest-only buy to let mortgage at 75% loan to value (LTV).
The Challenge: The majority of buy to let lenders consider an applicant with four or more buy to let properties a ‘portfolio landlord’. As our client had seven existing buy to let properties, it reduced the number of lenders available to us. Furthermore, this case occurred during lockdown when many buy to let lenders had limited their product loan to values at 70%, or put a hold on purchase applications altogether. Lockdown also meant that the case could be severely delayed waiting for a valuation!
The Solution: Following some mortgage market research to find out which lenders would still accept a 75% LTV purchase application, we then looked at the mortgage rates available from those that supported portfolio landlords. Having found a competitive rate for the client, we submitted her application. Fortunately, by this point, lockdown restrictions in England had lifted enough to allow for some physical valuations to take place. As the property was unoccupied, the lender was able to complete the valuation considerably quicker than we’d expected! A formal offer was issued just a month after submission, and the case completed the following month. For a buy to let property purchase during lockdown this was a fantastic achievement! Here are the details: