Market Financial Solutions (MFS) and Arc & Co. have delivered a £2 million buy-to-let mortgage to a client needing help with multiple buy-to-let (BTL) investments.
The borrower 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.
The portfolio consisted of ten BTL properties including houses in rural areas, towns and cities. Arc & Co. worked with the client to create a strategy to present the case to MFS’s underwriters which illustrated how the funds would be utilised. MFS’s strength in their underwriting was their ability to understand the diversity within the assets and use of funds which included obtaining planning permission, furnishing and legal costs.
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 of over £2m was promptly issued at an LTV of circa 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.”
Rupert Child, Senior Consultant at Arc & Co. commented: “I am very pleased to have completed this loan with MFS which had so many layers of complexity, numerous moving parts and timing conditions. Jemma is absolutely brilliant - keeping me updated and seeing the process through to conclusion.“
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.”