Categories: Case study | buy to let mortgages | first time landlords

Finding an 83% LTV consumer buy to let remortgage for an accidental landlord classed as “experienced”

This client moved out of his personal residential home to move in with family. He decided to let out the property, which he had done on a ‘consent to let’ basis under his residential mortgage. However, as their consent to let term drew to a close, the client needed a remortgage strategy, so they approached us. 

Specifically, they needed a consumer buy to let mortgage at 83% loan to value (LTV) in order for their tenant to continue living there.

Because they were no longer living in the property and had experience renting it on a consent to let basis, lenders classified them as an experienced investor, rather than a first-time landlord. This classification had a significant impact on their options.

Questions around experience are very central to securing buy to let mortgages, as some lenders want to have assurance that a landlord has a solid background in managing property and keeping up with regular payments. 

To ease the entry barrier for newcomers to this sector, other lenders can be flexible towards borrowers taking their first steps into the private rented sector (PRS). 

“Accidental landlords” like this client may have fewer available options by comparison, but this did not stop their determined mortgage advisor from tracking down the most suitable lender.

As a specialist broker, we can access higher loan to value (LTV) deals up to 85%, whether you are an experienced, first-time or accidental landlord.

The challenge

The client needed a consumer buy to let (CBTL) mortgage at a high (and specific) LTV, which they could not be flexible on. This contributed to the challenging nature of this case.

CBTL products are typically targeted towards accidental landlords who end up renting property due to personal circumstances, rather than as a long-term investment strategy, as with this client. Fewer lenders offer CBTL deals at the higher LTV ranges that the client needed.

This could have affected:

  • Most CBTL lenders cap lending at 80% LTV, making 83% difficult to place.
  • The client being classified as more experienced than a first-time landlord limited their choice of lenders and products.
  • The consumer buy to let classification added a further layer of regulatory consideration that narrowed the field of suitable lenders.

For many brokers, this would have been a problematic case to place. The combination of the higher LTV requirement and the experienced landlord classification left very few lenders willing to proceed.

Our approach

It was clear from the outset that most mainstream buy to let lenders would not be able to accommodate this case. We had to dig deep into our panel to find a solution.

We identified the small number of lenders on our panel who operate in the CBTL space above 80% LTV.

We pre-qualified the case with lender underwriting teams before formally submitting, ensuring we had a strong fit before going to a decision in principle (DIP). 

The result

The client’s main concerns were around being eligible for a CBTL mortgage, but our advisor found a suitable lender and got the DIP accepted. 

With this result, the client has the means to retain their former home as a productive rental asset, with the financing in place to support their position as a landlord going forward.

Why this matters for landlords and investors

If your circumstances mean you don't fit neatly into a lender's standard criteria, the right broker can make a significant difference to what you can achieve.

We can help with:

  • Consumer buy to let mortgages
  • Accidental landlord cases
  • Higher LTV buy to let lending
  • Complex landlord classifications
  • Specialist lending solutions

Need finance for a complex buy to let case?

If your situation doesn't fit the usual mould, speak to a broker who understands the specialist end of the buy to let market.

Enquire now and speak to a specialist broker.