The Challenge
The landlord faced two primary options:
- Single Mortgage for the Entire Portfolio:
While this approach offered simplicity, it came with higher interest rates and reduced flexibility. Selling individual properties or refinancing in the future would have been more restrictive under a single, overarching mortgage.
- Individual Mortgages for Each Property:
This approach offered lower rates and greater flexibility for future transactions, but it required significantly more work to manage 120 individual applications, valuations, and legal processes.
Our Solution
We recommended pursuing individual mortgages for each property, ensuring the landlord benefited from better rates and retained the ability to sell or refinance properties in the future. However, managing 120 applications required a meticulous and proactive strategy.
- Pre-empting Issues: Using our strong relationships with lenders, we anticipated potential challenges. We reviewed each property to ensure compliance with lender criteria and identified any red flags early.
- Tailored Lending Solutions: We worked closely with lenders experienced in handling multiple transactions, ensuring they had high exposure limits and robust processes for managing large-scale applications.
- Comprehensive Portfolio Support:
- Submitted 120 individual mortgage applications.
- Prepared detailed portfolios and business plans to support the landlord’s case.
- Organized valuations for every property.
- Collaborated with solicitors from the outset to streamline legal requirements.
- Personalized Service: Given the complexity of the project, we conducted multiple face-to-face meetings with the landlord, lenders, and solicitors to maintain smooth communication and resolve issues swiftly.
The Outcome
Thanks to our expertise and connections, we successfully secured individual mortgages for all 120 properties. The landlord benefitted from lower rates, retained flexibility for future transactions, and avoided any delays or complications during the process.
This case highlights the importance of working with a broker who understands both client needs and lender requirements, ensuring every detail is managed effectively.