80% loan to value on London property for client with adverse credit

Key figures:

• £995,000 property price
• 80% loan to value (LTV)
• 4.53% for 2 years fixed over 25-year term

The client:

My client and I came into contact over LinkedIn. He was a contractor within the finance industry and worked on daily rates. He, therefore, had gaps between jobs and had also built a little adverse credit.

The property:

The property was an exceptional flat in South London valued at £995,000. It was a buy-to-let originally owned by the client’s mother who was selling it to him. He planned to buy using gifted equity from his mother.

What were they looking for?

My client’s unique circumstances meant that many brokers and lenders would be unable to help him. In fact, he had approached seven other brokers that declined his case before he came into contact with me.

Why was it difficult?

As a contractor in the finance world, he worked on a freelance basis and therefore had gaps between his contracts. This presents challenges for most lenders, as a fixed income is most desirable. To add to this, he was also in the process of paying off a pay-day loan.

As a first-time buyer and first-time landlord, along with the above difficulties, my client had multiple factors working against him in this application.

What was the process?

I approached several lenders before we found one that was flexible enough to consider my client’s case. Some thoughtful research led me to a specialist bank who deals with clients that have adverse credit on a case-by-case basis. Enness has a previous relationship with this lender and I was able to cordially negotiate with them.

The solution:

We managed to secure an 80% loan to value (LTV) on the property. It is incredibly rare to be offered 80% LTV on properties around or above the £1million mark, but we successfully proved my client’s ability for repayment. We acquired a rate of 4.53% for 2 years fixed over a 25-year period.

I was also very pleased to refer my client to our insurance department and I connected him with a solicitor contact of mine, with whom I guarantee he will receive excellent service.