Recognising the unique demands of this project, Private Finance negotiated a bespoke mortgage strategy. We chose a self-build mortgage lender, facilitating the funding for both purchase and subsequent renovations. This type of mortgage was ideal due to its flexibility in dealing with properties that are initially considered uninhabitable.
A pivotal aspect of our solution was securing a high LTV of 80%, which is quite challenging under normal circumstances for properties needing significant work. We negotiated with the lender who, convinced by the client’s financial stability and the potential of the property post-renovation, agreed to offer the loan under their standard mortgage range despite the initial reservations.
The integration of the client’s income and the strategic disregard of a background mortgage for affordability calculations were critical in structuring this mortgage solution. This approach ensured the client could embark on their project without needing to sell their existing home, providing much-needed liquidity and stability.
The cherry on top: We were able to secure our client a standard mortgage product at rates lower than the self build range, but with the enhanced underwriting that ensured the client got the desired mortgage amount. Additionally, the lender ended up being so comfortable with the level of works.
Outcome, benefits, and key takeaways
The outcomes of this strategically devised mortgage solution were:
For those considering similar property investments, our recommendations include:
