One landlord takes out 14 mortgages for portfolio purchase

A lender has revealed that it has arranged 14 mortgages in one go for a Buy to Let landlord with over 150 properties in their portfolio.

The Mortgage Lender received the application for a client - described as “an experienced BTL landlord“ - who wanted to refinance seven of his existing properties in order to purchase another seven new build properties in the same development to add to his existing portfolio.

A statement from The Mortgage Lender says: “The case was not a simple one, with added intricacies appearing as the case progressed. The first challenge appeared when one client’s credit references could not be traced at the bureau. Engaging with TML’s credit rating team meant this was quickly resolved owing to a simple address correction. Furthermore, an additional four parties were involved in a number of the property applications, requiring additional approvals.”

Company teams involved in the case included the mortgage admin team, the new lending team to discuss the size of proposition, the sales team to manage the relationship with the product, as well as the underwriting team who spoke with the broker in detail about the mortgage products that could be offered to the client. TML also needed to liaise with parent company Shawbrook for funder agreement.

The process took approximately eight weeks to complete, and TML was able to provide a majority of properties with five-year products, with a 65 per cent loan to value (LTV) on new purchases, and either a 70 or 75 per cent LTV on remortgages. 

David Eaves, head of sales at TML, comments: “Not only did we need to liaise on funding a large number of properties, but also in a high interest rate environment we wanted to ensure we could honour the original rate we offered to the client … There were also some added complications the teams had to navigate along the way.“

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