An entrepreneur who was looking to raise capital for property investment and enter the UK property market with no prior property ownership struggled with previous brokers. We helped them secure a 70% LTV mortgage through a Limited Company to purchase their first investment property in Yorkshire with the flexibility for short-term lets.
The Challenge
The client faced a few hurdles in securing the required borrowing:
- First-Time Buyer & Landlord: The client had no prior property ownership in the UK, making them both a first-time buyer and a first-time landlord.
- Complex Deposit Structure: The deposit funds originated from an ex-partner’s separation settlement and parents located overseas.
- New Build & Short-Let Risks: The property was a new build flat, and the short-let strategy is generally viewed as less secure by traditional high street lenders.
The Strategy
To structure a deal that met the client’s needs, we leveraged our network of specialist lenders:
- Specialist Alignment: We approached lenders specialising in first-time buyer and first-time landlord applications, particularly those familiar with Limited Company structures.
- Underwriter Engagement: We held detailed discussions with underwriters to present a clear picture of the deposit’s origin and the long-term investment strategy.
- Flexible Letting Terms: We secured a lender willing to allow both short-term and long-term letting options on the Yorkshire property.
The Results
- Loan-to-Value (LTV): 70%
- Property Type: Newly completed new-build flat
- Location: Yorkshire
- Borrowing Entity: Limited Company
- Key Outcome: The client completed the purchase of their first investment property at a competitive interest rate.
Why This Matters
For individuals looking to raise capital for property investment, inflexible lending criteria can act as a major barrier. By presenting a detailed profile and working with specialist lenders, first-time investors can navigate complex situations, such as overseas deposits and short-let models, to build their portfolios.
Speak to a Specialist
Ready to explore your options for a Limited Company or Buy-to-Let mortgage? Book a consultation with our team today.