Our client's offer of £86500 had been accepted on a 2-bedroom flat in Fife, Scotland which he was looking to rent out for £650 per month.
However, there were a few complexities to sourcing the right lender.
Firstly, the property was ex-local authority which some mortgage providers either wouldn't lend on, or would restrict to 70% LTV, not the 75% the client required.
Secondly, the client had a layered company structure, with a trading company subsidiary of his SPV property Ltd company . A lot of lenders weren't comfortable with this.
Other criteria that narrowed the potential loan pool included the property being located in Scotland, the client's first time landlord status, and the small loan size.
Finding a lender who fit all the abovementioned criteria proved tricky.
The main stumbling block was the layered company structure and needing to finance at 75% LTV on an ex-local authority property. Several providers indicated they could lend but only at 70% LTV or less.
Nevertheless, we were eventually able to source a very competitive rate for the full loan amount on an Interest-only basis. The client was delighted, and allowed him to complete on his first Buy-to-Let investment property in autumn 2024.
Case Study 8
Case Study 2
