Two UK-based applicants approached Enness Global seeking finance to purchase a circa £2 million buy-to-let property in Central London at approximately 65% loan-to-value (LTV). The applicants had previously owned buy-to-let properties and had recently sold one, with the proceeds intended to provide the deposit for the new acquisition.
The applicants were currently renting and did not own another residential property. They also owned two established limited companies with strong net profits, although they drew relatively modest personal incomes from the businesses. This created an additional consideration for the lender, as the absence of an existing residential property could raise questions around whether the proposed purchase was genuinely intended as an investment.
Buy-to-let lending is typically assessed differently from residential mortgage lending, with greater emphasis placed on the anticipated rental income and the property's ability to support the borrowing. In this case, it was important to demonstrate that the applicants had a credible investment rationale and that they could have supported the borrowing under a residential lending assessment if required.
Enness Global reviewed the applicants’ wider financial position, including the profitability of their businesses and their existing personal circumstances. The strength of the companies demonstrated that alternative residential financing could have been available based on their overall financial position. In addition, the applicants were already committed to a long-term tenancy, and their rented property was larger and more conveniently located for their family, including proximity to their children’s school.
These factors provided important context for the proposed investment and helped demonstrate that the Central London property was being acquired as a genuine buy-to-let investment rather than as an alternative primary residence.
Enness Global secured a 65% LTV buy-to-let mortgage on a fixed-rate, interest-only basis, subject to lender criteria. The facility enabled the applicants to proceed with the acquisition while retaining the flexibility associated with an investment property and making use of the deposit generated from their previous property sale.
The case demonstrates the importance of presenting the full financial and personal circumstances of applicants when arranging specialist buy-to-let finance. Where a transaction falls outside a lender’s typical profile, detailed consideration of the applicants’ wider circumstances, existing commitments and investment rationale can help identify lenders whose criteria are better aligned with the case.
Risk Warning:
Your property may be repossessed if you do not keep up repayments on your mortgage or other borrowing secured against it. Buy-to-let property values and rental income can fall as well as rise, and rental income may not always cover mortgage payments and other property costs.
Disclaimer:
This case study is for illustrative purposes only and does not constitute financial, legal, tax or investment advice. Finance is subject to status, underwriting, property suitability and lender criteria. Terms, rates and availability may vary depending on individual circumstances.
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Property values can fall as well as rise, and you may not get back the amount originally invested. Property investments can be illiquid and may take time to sell. Where borrowing is used, your property may be repossessed if you do not keep up repayments on a mortgage or other loan secured against it.
