The Intermediary – May 2025 - Flipbook - Page 68
B RO K E R B U S I N E S S
Case clinic
KEYSTONE PROPERTY FINANCE
Keystone could accept this case as we don’t
require a minimum incorporation period for SPVs,
and would welcome the fact they had other buyto-lets in the background in their own names.
Trading limited companies would also be
welcome as long as they’ve been trading for at
least two years with positive figures.
The partner’s minor default wouldn’t be an issue
either, due to the time that has passed, as long as
it had been satisfied prior to application.
a mortgage application. In addition, for a BTL
mortgage they would also need to already own
another residential or BTL property in the UK.
Because the intended purchase is an HMO, the
applicant would need to demonstrate at least 12
months’ letting experience.
If other lenders are cautious due to short UK
credit profiles, we would always recommend
a pre-submission referral for us to review the
circumstances and provide an in-principle
lending decision.
TOGETHER
HARPENDEN BS
Together can certainly consider this deal; we have
flexible criteria on first-time buyers and first-time
landlords. The company set-up is considered to
be an SPV, and although it has minimum trading
time, Together would be able to take it on, subject
to valuations and affordability against the income
credit report. The default from four years ago will
not have a negative impact as it’s over 12 months
old. As long as the property is of standard build, we
may be able to offer up to 75% LTV.
We do not lend on HMOs. However, to answer the
other questions, we would accept a client that has
recently received British Citizenship or indefinite
leave to remain (ILR). We would require proof that
the deposit monies have been in the UK for at least
six months, if they came in from abroad. The client
needs to have an income of £30,000 per annum,
excluding the rental income from the subject
property. They do not need to be a homeowner. We
lend to first-time buyer and first-time landlords,
providing it is professionally managed.
BUCKINGHAMSHIRE BS
The society can consider day one SPV for BTL
limited company, but further details would need
to be provided for the default to ensure that it
still fits the standard credit matrix. The applicants
would need to be homeowners and would not be
able to be portfolio landlords.
C AS E FOU R
BTL mortgage
for a recently
naturalised citizen
TOGETHER
A
Even though this applicant doesn’t have UK
citizenship or residence, Together could still
help. We lend to foreign nationals and expats as
standard, and with the property being an HMO
it would be within our standard lending criteria
offering 75% LTV. This would of course be subject
to the usual checks on affordability and valuations.
UNITED TRUST BANK
The society would be able to consider the
applicant’s credit status and lack of mortgage
history, as we do consider cases on an individual
basis; however, if the applicant is looking for
lending on a HMO, then we could not, as we don’t
lend on HMOs. ●
client earning £68,000 annually has
been living in the UK for five years and
was recently granted British citizenship.
They want to invest in a £300,000 BTL with a 25%
deposit, but have limited UK credit history due to
previously holding overseas accounts. Although
the client has no adverse credit, lenders are
cautious due to the short UK credit profile and lack
of mortgage history. The property is a small house
in multiple occupation (HMO).
UTB requires evidence of three years’ UK address
history for someone to be eligible to submit
66
KEYSTONE PROPERTY FINANCE
Keystone would happily assist with this case.
We don’t require applicants to have held British
citizenship for a minimum amount of time, but
instead look for an active UK credit footprint and
at least three years of address history.
If the applicant is a first-time landlord, and
providing they are a homeowner with a minimum
annual income of £25,000, we can provide lending
on a small HMO with up to six occupants for firsttime landlords. We also accept foreign national
applicants without indefinite leave, given that they
have held a valid visa and have been a legal UK
resident for the past three years.
The Intermediary | May 2025
BUCKINGHAMSHIRE BS
