Client circumstances:
Our clients were British citizens who lived and worked in Singapore but owned a residential buy-to-let property in the UK. They had purchased the asset the previous year using a bridging loan – a portion of which went towards a full renovation which significantly increased the property’s value. With the bridging loan due to be redeemed, the clients were looking to repay this and exit onto longer-term finance. Knowing that we offered buy-to-let mortgage to expat clients, their broker got in touch.
MT Finance solution:
The borrowers were keen to ensure they could borrow against the property’s increased value – which some lenders won’t do if there is a significant increase in less than six months. However, we were able to satisfy our concerns based on the evidence they provided us with which included before and after images and a schedule of works. Our ability to lend against the property’s higher value enabled us to start work on issuing a residential buy-to-let mortgage of £140,000 at 64% loan-to-value of the open market value of £220,000. The term was set for 25 years.
The benefits:
Thanks to our ability to think outside the box and take an objective view of the application and the clients’ expat status, we were able to issue a buy-to-let mortgage before their deadline. This enabled them to repay their existing bridging loan without facing any financial penalties. They can now go on to secure tenants which will generate a monthly income for them.