Case Study

Overcoming Valuation Challenges for Buy-to-Let Mortgage

Service provided:

Buy-to-Let Remortgage & Property Valuation Management

The challenge:

Our client, a seasoned property investor with multiple buy-to-let properties, approached us to help remortgage one of his properties, a purpose-built flat that had been on a standard variable rate (SVR). With rising costs associated with the SVR, he wanted to secure a more competitive mortgage rate.

We began by reviewing the market and found a lender whose criteria aligned well with his financial situation and the property itself. After discussing the available options with the client, we moved forward with a full mortgage application, confident that everything would proceed smoothly.

However, during the property valuation, a significant issue emerged. The lender raised concerns about the external wall and cladding of the building, requesting extensive documentation before making a final decision on whether they would approve the mortgage. This created unexpected delays and complications, leaving the client uncertain about the outcome.

The solution:

Faced with a challenging situation, we quickly adapted our strategy to ensure the client could still secure the mortgage they needed. Here’s how we approached the issue:

Managing Lender Requests:

We immediately worked with the client to gather all the documentation the lender requested regarding the cladding and external wall of the property. This included structural assessments and building reports to reassure the lender.
Despite providing the required information, the lender continued to request additional reports, creating an increasingly cumbersome process with no clear resolution in sight.

Switching to a New Lender:

After consulting with the client, we decided the best course of action would be to pursue a different lender. We identified another lender whose criteria suited the property and submitted a full mortgage application with them.
The new lender handled the valuation promptly and without any issues, particularly regarding the external wall and cladding concerns.

Successful Mortgage Approval:

The application process with the new lender went smoothly, and we were able to secure a mortgage offer in good time, meeting the client’s required borrowing level and locking in a competitive rate.

The results:

Our ability to navigate these challenges and switch to a more suitable lender resulted in a successful outcome for the client:

Timely Mortgage Offer: Despite the initial setbacks, we secured a mortgage offer quickly after transitioning to the new lender, avoiding any long-term delays.
Smooth Valuation Process: The valuation with the new lender sailed through with no concerns about the property’s external wall or cladding, eliminating the need for further documentation and speeding up the approval process.
Client Satisfaction: Our client was extremely pleased with how we handled the situation, particularly our swift action to switch lenders and resolve the valuation issue. We also secured the level of borrowing required, ensuring his investment strategy remained on track.