Case Study – Securing a Buy To Let Mortgage on an Auction Property with Tight Deadlines
Background
November 2024
Our client successfully won an auction property with a short completion timescale. The property was in good condition and required no refurbishment.
Given this and the client’s financial situation, the client was hesitant to secure it using bridging finance and instead wanted to explore obtaining a standard buy to let mortgage.
Recognising the complexities of securing this type of financing within such a limited timeframe, the client turned to us for expert mortgage advice to determine the feasibility of this approach.
The Challenge
Securing a standard buy to let mortgage within an auction’s completion deadline is typically difficult due to lender processing times. Auction purchases often require completion within a short window, a timeline that can be restrictive when applying for a mortgage. Lenders usually require full underwriting, property valuations, and legal checks before issuing an offer, which can lead to delays.
Given these constraints, our challenge was to expedite the mortgage application and approval process while ensuring the legal aspects were handled efficiently within the tight deadline.
Our Strategy
Understanding the urgency, after a quick chat with the client to garner their full situation, using our in depth lender criteria we submitted a mortgage application to specialist lender Landbay, utilising one of their Automated Valuation Model (AVM) products. This would not only provide the client with a competitive rate but would maximise their chances of meeting the tight deadline.
The AVM was completed upon application, confirming that the property value and expected rental income aligned with the client’s expectations.
Having established a strong working relationship with Landbay’s Sales Manager, Ian Hall, we leveraged this connection to ensure a smooth and expedited process. Ian and the assigned underwriter collaborated closely, maintaining open communication and prioritising the case due to the urgent timeframe. Their proactive approach and commitment to meeting the deadline enabled us to secure a mortgage offer within just three days.
One further challenge arose when the client’s chosen solicitor was not on Landbay’s approved solicitor panel. Since the client had an existing relationship with their solicitor and some legal work had already been undertaken, they opted for separate representation, with Blacks Solicitors acting on behalf of Landbay. Blacks Solicitors were made aware of the short deadline before being instructed and agreed to proceed accordingly.
The Results
| Property Valuation | £131,000 |
| Loan Amount | £98,250 |
| Loan-to-Value | 75% |
| Mortgage Lender | Landbay |
Despite the time-sensitive nature of the transaction, all parties worked diligently to facilitate a smooth and efficient process. Thanks to the coordinated efforts of the lender, solicitors, and our team, the purchase was successfully completed within just four weeks, meeting the auction deadline. The client was highly impressed with the speed, professionalism, and level of service provided, ensuring a stress-free experience from start to finish.
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IMPORTANT INFO
Any property used as a security may be repossessed if you do not keep up with repayments on your mortgage.
