The most recent improbable mortgage I managed to secure was for a buy to let new build property. My client, a dentist, had made an offer on a buy to let new build flat in Kent but his mortgage application had been declined. He had been working with another broker who had stopped contacting him after the application was rejected so the client came to me both dissatisfied and concerned that his mortgage wasn’t going to be successful.
The client’s income was c. £36,000 per year and his wife was on maternity leave. He also had one dependent child and a primary residence. He wanted to borrow £140,000 and his income was substantial to support the monthly mortgage payments on this newbuild buy to let purchase.
The problem with the flat he made the offer for was the buy to let new build property was above a commercial business – a shop. Most lenders are very cautious about becoming involved in properties near businesses as they think it makes them harder to sell if they are repossessed. For this reason they need to be reassured by the broker to be completely confident in the transaction.
However, there are multiple lenders willing to lend on such properties if they are painted a thorough overall picture of both the borrower and property.
Consequently, I needed to find a lender that would favourably look upon my client’s circumstances and be amenable to the prospects of the buy to let newbuild purchase.
I sourced a specialist lender with whom I have a relationship and convinced them to proceed with the mortgage using the reassurance of a specialist valuation of the buy to let new build purchase which supported the existing valuation.
Specialist valuations are slightly more costly because they go into a great level of analysis. They essentially project the anticipated value of the property by examining comparable properties, the locale and various trends.
The valuation was positive and the lender quickly agreed to offer terms which my client accepted. These were 5 years at 3.29% and we processed the application immediately.