Complex Buy-to-Let

The Buy-to-Let market in many ways has now become very complex for many landlords, especially those looking to build or expand a portfolio.

Changes to the market such as second property stamp duty, limitations to mortgage interest tax relief, criteria and underwriting changes brought about by the PRA (the lenders regulator), have all contributed to the market complexities. Most mortgage advisers can assist their clients who are looking for standard Buy-to-Let on their first or second property, by using High Street style lenders whom they are familiar with. However, when the client’s requirements are more complex, a mortgage adviser will need to invest time in building their knowledge in this specialist market and they may also need to be able to access more niche BTL lenders and commercial lenders to satisfy their clients needs. Seeking some help from other specialists like ourselves at Connect. Some of the more complex buy-to-let areas we can assist you with are:

Portfolio Landlords

A client with 4 or more BTL’s including the subject property, will be subject to specialist underwriting including documents such as a business plan, a cash flow forecast and an Asset and Liability statement following full details of the existing portfolio. Connect can help you to put all these together, to be presented to the lenders in their best possible light for success.

HMO’s and Multi Units

This type of BTL covers a range of property layout types from a 3-bedroom 2 storey property let to 3 students on a one tenancy agreement, to a 10-bedroom 5 storey property let to DSS tenants, or a freehold house converted into 4 flats that do not have separate legal titles. Understanding legally which of these requires a HMO licence is the first challenge (It could be 1 or 2 of them!), Connect can assist initially by letting you know what the key questions are to ask the client and then finding the right lender solutions depending on the answers!

Expats and Foreign Nationals

Not every lender will consider a BTL for an applicant that is not resident in the UK. British Expats are better catered for with over 30 lender options on Connect’s panels, but the criteria does differ from these lenders when comparing what they offer to UK residents. For Foreign Nationals the market is more limited, but we are still able to help a range of Nationalities and those who wish to purchase via offshore companies.

Limited Company BTL

These mortgage types have become more popular since the tax changes, as mortgages held inside a Ltd company can still offset the full mortgage interest against the rental income. Understanding the type of company being used and who the Directors and Shareholders are, can influence which lenders would consider the company and Connect can help you source the most competitive from an extensive range of lenders.

Your client’s complexities may sit in one of the above categories, or you may just be struggling to raise the capital they need due to the rental income. With lenders that can consider your clients earned income, to lenders with low rental calculations or no calculations at all, we can help!

Are your clients BTL circumstances proving more complicated than you realised?

Give us a brief outline of your client enquiry and we will come back to you quickly to let you know how we can help. If you would like to speak to us immediately, call us on 01708 676 123.


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