Market Financial Solutions (MFS) and Arc & Co have delivered a £2 million buy-to-let mortgage to a group of landlords needing help with multiple buy-to-let (BTL) investments.
The borrowers presented several challenges. They were refinancing their existing portfolio, which fell under a mix of private companies and personal names – the goal was to bring their portfolio together into one limited company, and then raise capital for new acquisitions.
Ten BTL properties were being bought at once. These included houses in rural areas, towns and cities.
MFS’s underwriter had to establish how the funds would be used, while valuers were needed for the ten properties. By working with the client and broker, the lender determined that there was a solid plan for deciding how much money would be used for planning permissions, furnishings, legal costs and the like.
MFS saw that there were multiple exit strategies available to the borrower given the breadth of their BTL portfolio. Further, by running multiple affordability calculations, they noted there was plenty of potential for the properties on the horizon.
Given these factors, along with the fact that most of the properties already had tenants, a loan (£2,028,000) was promptly issued at an LTV of 70%.
Imogen Williams, Regional Sales Manager at MFS, commented: “At MFS, we pride ourselves on cases like these, which present plenty of interesting and unique challenges. Here, we were simultaneously consolidating an existing portfolio under one private company as well as financing the acquisition of ten new BTL properties.
“We had to act quickly and have completely open lines of communication with the broker and borrowers. By doing so, we were able to establish all the facts involved, overcome the complexities of the case, and deliver a product that met the exact needs of the borrowers. It’s a great showcase for MFS’s qualities.”
Paresh Raja, CEO of MFS, added: “Many lenders would have struggled with the numerous complexities of this case, but MFS, with its 16 years’ experience as a specialist lender, was able to overcome all the challenges, and quickly. Imogen and the underwriter, Jemma, handled the case superbly from start to finish.”
