Market Financial Solutions (MFS) and Arc & Co. have worked together to deliver a £2 million buy-to-let mortgage to a client needing help with multiple buy-to-let investments.
The borrower was 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 10 buy-to-let 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 that illustrated how the funds would be utilised. Yhe lender was able to grasp the diversity of the assets and the 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 buy-to-let portfolio. Further, by running multiple affordability calculations, it 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 £2 million was issued at an LTV of circa 70%.
Imogen Williams, regional sales manager at MFS, said: “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 10 new buy-to-let 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., added: “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 Vaja, the underwriter, was absolutely brilliant – keeping us updated and seeing the process through to conclusion.“
Paresh Raja, CEO of MFS, concluded: “Many lenders would have struggled with the various 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.”
