Since the eve of the Mortgage Credit Directive and the introduction of consumer buy-to-let brokers have been left with a lingering anxiety on what to do with first-time landlords.
Lenders haven’t made it easier, with each and every one having a different understanding and definition for the term.
The official rules define consumer buy-to-let as ‘any buy-to-let contract in which the borrower has not entered ‘wholly or predominantly’ for business purposes’.
But there are disagreements about what this means. That’s why specialists, who deal with this sort of case all the time rather than once every couple of months, are well placed to match borrowers who might be looking for their first buy-to-let mortgage but who know they don’t fall into the consumer restrictions with the most suitable lender.
Vantage Finance recently achieved success for just such a case – a couple who were hoping to invest some of their capital into a buy-to-let property in Scotland as part of their investment portfolio.
Lucy Hodge, director of Vantage Finance, said: ‘We meet clients face-to-face in this type of situation and it was clear from the outset that this couple were making an investment decision. They didn’t fall into the accidental landlord category at all.
‘They had got in touch with a developer and were looking to purchase a property in Glasgow, they were both on good incomes and wanted to borrow £81,000.
‘Not only did we succeed in finding them a five year fixed rate at 4.09 per cent, the loan was completed within 23 working days from start to finish.’
Loan amount: £81,000
Overall LTV: 73.64%