First-time landlord purchasing five BTL properties, DL3

Client circumstances:

Recently, a broker approached us on behalf of their client who intended to purchase five properties. These properties were newly built and owned by the construction company, of which the client was a director, but did not have majority control. The client planned to use their newly incorporated company, in which they were the sole director and shareholder, to make the purchase.

MT Finance solution:

When it comes to lending to newly incorporated companies, some lenders can be quite cautious and hesitant due to the perceived risks associated with their lack of trading history. However, we took a different approach. Not only did the case make perfect sense to us but we also took a pragmatic view of the client’s experience as a director. Being a first-time landlord and sole director, with no other employees, we knew it was crucial to support them throughout the entire process.

To expedite matters, we worked simultaneously on all five applications, resulting in the approval of five individual buy-to-let mortgages, totalling £140,000 at 75% LTV. To ensure their financial stability, we set the mortgage term for 35 years.

The benefits:

With our help, our client went from a first-time landlord to a portfolio landlord overnight and can now secure tenants in the five properties, creating five additional streams of income from their portfolio.