A portfolio landlord reached out to their broker seeking a lender to assist with a capital raise for further property investment in a mixed-use property located in London. They faced challenges finding a lender willing to support their case due to their extensive portfolio of unencumbered properties with no repayment history. They required a 20-year term on an interest-only basis for the property, which was once a public house.
In addition, many lenders may be unwilling to support such sizeable term lengths on an interest only basis and may often decline applicants with no previous mortgage history available.
The broker contacted their Specialist Finance Account Manager, Davey Gurm, to see what could be done to help. Although we wouldn’t usually lend on a repurposed public house, the property had been converted almost 10 years ago and therefore it was established in its current use and layout for sometime creating comfort from a security risk perspective. Despite the client not having any properties with a mortgage, their successful portfolio size and background credit checks reassured us that they were experienced and had a very good understanding of managing their portfolio and personal finances.
The case was supported by senior underwriters who presented to our Group Head of Underwriting for exception approval. Consequently, the case was approved much to the delight of a very happy borrower.
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Joshua.williams@osb.co.uk
