Buy to Let: An Interesting Case Study

Posted 01-08-2018

As tax changes start to bite, buy to let investors may face greater challenges and brokers could see more landlord clients who have experienced a financial blip.

Find out how we were able to help a broker in securing a mortgage for a portfolio landlord in "The interesting case of the buy to let landlord and the blip".


Hi. I’m Rob Barnard, Director of Sales at Pepper Money.

I’d like to talk to you about your interesting Buy to Let cases.

In the coming years, as tax changes start to bite, Buy to Let investors are going to face greater challenges and, chances are, you will encounter more landlord clients who have experienced a financial blip.

At Pepper, we specialise in helping you to find a home for your interesting cases and our team of skilled underwriters are mandated to look beyond a credit score and review every case on its own merits.

This is the approach we took recently when we worked with a broker on the interesting case of “the Buy to Let landlord and the blip”.

The client was a business owner who had invested some of his earnings into Buy to Let and built a small portfolio of rental properties. He wanted to remortgage one of these properties to release equity that he was going to use to grow his portfolio.

However, the client had a minor blip on his credit record due to some missed payments several years ago and although his payments were now up to date, the blip on his credit file remained.

An additional complication was that he paid himself a salary as an employee of his limited company, but he also received dividends as the owner of the business, and this combination of income caused issues for some lenders.

But it wasn’t an issue for Pepper and we were able to provide the client with an 80% LTV remortgage to raise funds for the purchase of a new investment property.

We also weren’t phased that he was a portfolio landlord. As a lender that puts an emphasis on manual underwriting, we can take these cases in our stride. And we are happy to look at other aspects of Buy to Let, such as Let to Buy.

There is often an interesting story behind your client’s Buy to Let application, and at Pepper, we want to hear it.

If you’re interested in finding out more, visit our website at - No ‘.com’ required.

All our case studies are based on real cases but the names have been changed.

This case study is based on criteria in effect at the time this case was submitted and reviewed by Pepper Money. We reserve the right to change or amend our criteria at any time.

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