This was an unusual one on quite a few fronts. A few years ago we helped a couple to purchase their property, it was a flat in block in London. The couple at the time had adverse which is why they got in touch with us.
They now wanted to remortgage the flat (which was already let out) on to a Buy to let mortgage. Originally they went to another broker (I know!). They did this because they thought we only did adverse and bad credit so did not think this was something we could help with.
After speaking to 2 brokers and both struggling to help, they then got in touch with us (third choice!).
The situation
This property had previously been their home. However it has been let out for around a year as they had outgrown it. They wanted to remortgage it from a residential mortgage to a Buy to let – easy enough!
However, the property was in a block of homes, some of which were social housing and hardly any were privately owned rental properties – these 2 things make it quite tough.
In addition to that, the property also had “Deck access” which is where all of the flats are access from a passage at the front. This can be problematic for a lot of lenders, especially where the deck is open access (ie not secure).
All things combined there were a few hoops to jump through on this one.
What we did
Before starting we had an idea of 2 lenders who might do this but there was a big question… Who had you already been to. With such a small list of lenders it does not give us many options.
They had been to one of them. So we were down to 1 lender!
We went off and did our research. After 12 years advising, we tend to have an idea but because lenders criteria is constantly changing we always do the research from scratch. We managed to find another possible lender and a third choice where it would have been a bit 50/50 at best.
We ran the options by the client and as expected he wanted to go with the lender that had the best chance of success. Funnily enough, this was one of the first 2 we had in mind from the beginning.
The outcome
We submitted the application. The application itself flew through, no problems with the underwriter (not that we were expecting one). We then got to the bit we were unsure about, the valuation. There was a little delay with this which added to the suspense. Although we knew the property was within criteria, because of the quirks and the problems with the property you never know 100% if the lender will be happy to give it the green light.
Within around 2-3 weeks from submitting the application the valuation was back and it was exactly what we were hoping it would be. It came back bob on what we had asked for. No problems raised with the property etc.
This mortgage was with a high street lender at normal rates. No expensive lending or quirky lenders and we still got it through first time.
Saving the best to last
2 things spring to mind when looking to summarise this case.
The first is that one of the brokers the customer went to submitted an application to a lender who does not accept Deck access in any circumstances. I am not here to slate other brokers, I do not enjoy it as it means something has gone wrong. But also we have a good enough reputation to not need to do that. But in this case I feel like it needs mentioning.
We do not really do Buy to lets. They are not really our thing so we do not promote them. However in this case it was an existing customer and someone who was struggling. I think this just goes to show that even though our experience and knowledge may be lacking in certain aspects on BTLs, when we do take a case on we do a thorough job. This was actually Matts first BTL mortgage and I find it interesting that he did a better job than what I can only assume is an experienced broker.
The second thing that springs to mind is that this customer saved the best broker til last (joking). Its made me realise that I maybe need to change how we word things in future. Saying we do not really do Buy to lets is not the same as we do not do them at all. The last thing I want is existing customers going to other brokers as they think we cant help, especially when we can and will.