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When the portfolio doesn't stress at most lenders minimum requirements



The client was a portfolio landlord with nine properties. She had come to the end of term on part of her portfolio with her existing lender and debt was being called in by the current provider. The current mortgage was a single loan facility which was held over 2x multi-unit freehold blocks and 2x single buy-to-let units. The current mortgage was held in the name of the client’s SPV limited company and borrowing was required to 75% LTV.


The rental on the background portfolio did not stress at most lenders’ minimum requirements and this was causing the broker some problems in sourcing a new lender for the remortgage.


We worked with the broker, the client and our lender panel to break the remortgage down in to four separate applications, adjusting the borrowing across the four security properties so that the rental calculations worked on each property and the client was able to borrow to the level required.


The lender we worked with was able to discount the properties on which they were lending from the portfolio and, as the remaining properties in the portfolio were under 65% LTV, a reduced stress rate of 5.5% at 100% was considered acceptable.


The whole remortgage process took just under six weeks from the time the application documents were received and the client was able to repay the existing mortgage debt prior to the current lender’s deadline.


Please note: This article should not be used as a reference for available products, please REQUEST A CALL BACK OR SUBMIT ENQUIRY to find out the products available for your clients circumstances.


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