Insight and events

Delving deeper into the complexities of a case could make all the difference. A conversation with us means we can explore alternatives and consider cases outside of our standard criteria.

Here’s a roundup of a few recent cases that were discussed with us, all of which had different complexities - from a shared ownership client with adverse credit, to a tenant wishing to purchase their rental property at a reduced price.

Buy to let with built-in complexity

A buy to let client had used a bridging loan to buy a residential property, via a limited company. But they also had a less-than-perfect credit history, which included missed credit card payments and defaulting on a loan.

To further complicate matters, they were a first-time landlord and had a satisfied CCJ. 

A quick chat with us meant we were able to delve deeper into the client’s history and take a closer look at their credit report.

Here’s just a few reasons why we were able to progress the case:

• we accept limited company and first-time landlords, as long as they already own a residential property
• we accept intercompany loans, shareholder deposits and director loans as deposits
• we don’t apply specific SIC code requirements and we accept newly formed SPVs and LLPs
• we can consider defaults as long as they were registered more than three years ago and satisfied prior to application; or they were satisfied more than 12 months prior to application regardless of date of registration

Adverse credit affecting your first-time buyer?

First-time buyers are already facing an uphill battle to get on the housing ladder, with the cost-of-living crisis, the ending of Help to Buy and rising house prices only adding to this. One option for those with a small deposit or a lower income is shared ownership. But these mortgages are already few and far between, and lenders’ criteria can be very restrictive.

A broker approached us about their client who was looking for a shared ownership mortgage. They were worried that, he had a few missed payments on his credit card.

As we can consider missed payments on unsecured arrears, this case was reviewed by our underwriters, who took a holistic approach in examining all aspects of the client’s history to progress the application.

We also only do a soft search at AIP stage, meaning your client’s credit score won’t be affected unless it progresses to a full application.

Rent to buy – with a difference

One case that was unique, even for us, involved a client that was looking to buy the home he had been renting. He had a previous agreement with the landlord stating that he could purchase the property at a reduced price, due to the extensive refurbishment works he had undertaken, including a new kitchen and an extension. The difference in value amounted to £700k.

What’s more, the client was looking to purchase the property using profit from his limited company.

From a quick conversation with our experienced team, we were able to answer some of the brokers’ questions concerning evidence of profits and accounts, and clarify further aspects of the case.

It’s no secret there’s been a big increase in landlords who are using limited companies to purchase properties, and it’s an area we’re very familiar with. Not only do we have a range of mortgages to help, but your dedicated BDM will be with you every step of the way.

How we can help with HMOs

Sometimes HMO purchases aren’t straightforward – but this is where our wealth of experience comes in.

A recent case involved a client who was an experienced landlord and wanted to remortgage a property in a non-Article 4 area. The property had been let under an assured shorthold tenancy agreement, and they were undertaking refurbishment works to convert into an HMO. 

The broker was able to clarify with us what terms we would accept, and we discussed timelines around refurbishment and change of use licences.

Each HMO case may have its own quirks so it’s always worth speaking to your BDM. As a start, our key HMO criteria includes:

• We’ll consider HMOs with up to 20 lettable rooms
• We’ll accept multiple flats or houses on a single freehold
• Investment valuations can be instructed on five and six bed HMOs (subject to product criteria)
• We don’t set limits on the size or value of existing portfolios held with other lenders; and
• There’s no limit on the number or value of properties mortgaged with us

The proof’s in the pudding – as you can see we can help with a wide range of residential and buy to let cases, and our criteria isn’t the end of the conversation. So, if you don’t know where to turn for your client’s seemingly hard to place case, let’s talk – it could be a “yes” from us!