With a common-sense approach to portfolio cases, West One offer a safe pair of hands to help landlords maintain and grow their portfolio, by delivering finance in a smooth and timely fashion.
Our latest case study highlights the benefit of our individual approach to underwriting in successfully supporting portfolio landlords to grow their portfolio.
The Client
Our client was a portfolio landlord with 10 properties in his portfolio, aside from his property portfolio, he earns a gross annual salary of £12,400 as a sole trader in the music industry. The client has historic mortgage arrears from 2018 and rents their residential property.
The Situation
The client was looking to expand his portfolio by purchasing a 3-bed terraced house that was currently owned by a family member. The client already had 4 high street mortgages and over £1m in lending with another lender.
Our Solution
Unlike traditional high-street mortgage lenders, West One were able to get comfortable with the client’s situation. We look for the background portfolio to be at 100% rental cover, meaning we can focus on the property in question. The LTV was less than 70% on the background portfolio and the rental income would be 258% of the mortgage payments.
While some lenders will refuse to lend to an applicant that resides in a rental property, our common-sense approach meant that we were comfortable with the mortgage history from the applicant’s portfolio and his proof of rent payments. In addition, we did not require proof of income from the client as the DSCR was 168.14%.
The Result
At West One, all our cases are manually underwritten which means our team of experts will assess the risk of the case on an individual basis. In this case, despite there being historic mortgage arrears, as they had not taken place during the last 3 years, we did not need to take these into account and were able to proceed under our W1 product range.
Our common-sense approach to portfolio landlords meant that we were able to offer the client the required funds to complete the purchase and support the growth of the client. The borrower was delighted with the outcome and the fast and flexible service that West One delivered.
To discuss a case or register as an introducer please get in touch with the West One team here: https://www.westoneloans.co.uk/buy-to-let-mortgages#introducer