Landlord grows his portfolio thanks to a buy-to-let mortgage from Together


Richard Tugwell

Specialist lender Together and commercial brokerage B2B Financial have joined forces to help a landlord buy a plot of land – by re-financing a buy-to-let flat he owns.

The property-owner, a long-standing customer of Together, needed just over £46,618 to purchase the plot, in Walsall, West Midlands, which has planning permission to build a residential property.

He intends to build a new buy-to-let property on the land, valued at £50,000, but faced a deadline to exchange contracts on its purchase – so he needed the finance in place quickly to fund his latest venture.

Having worked with Together before, the customer knew its reputation for speed and service and spoke to his broker Gareth Davies, of B2B Financial about the best way to fund his project.

The customer borrowed the money, against the unencumbered buy-to-let property he had owned for a number of years at 75 per cent loan-to-value. This worked out cheaper than the customer taking out a commercial development loan, which would have proved unaffordable in his circumstances.

Richard Tugwell, group intermediary relationship director at Together (pictured), said:

“This case just shows how thinking outside the box by trusted brokers and lenders can really deliver for customers.

“The property the customer wanted to borrow against is a well-kept two-bedroom flat worth £70,000 on the open market, so the equity was there in this existing buy-to-let property.

“Now he has the money in place, as well as planning permission to build on the land, he’ll be able to press ahead with his new build property.”

Together had to overcome a potential hurdle during the application process. Expert underwriters looking into the customer’s background discovered a credit blip on his record, which related to a period when he was battling cancer in hospital.

However, because he’d been paying the account for the past four years, and had an otherwise satisfactory credit report, Together agreed to provide the loan.

Gareth Davies, a broker with B2B Financial who brought the case to Together, said:

“Because the client had a deadline to meet to buy the land, there were understandably a few nerves on his part. However, Together’s underwriters got the deal over the line. It was a fantastic result with a very happy conclusion for the client.”