Mercantile Trust has completed a £50,000 first charge buy-to-let loan for a landlord who wanted to fund improvements to an unencumbered rental property in England.
The buy-to-let loan completed four working days after the lender issued documents, with no legal fees or solicitor involvement. It was secured at a loan-to-value ratio of 11.41% on a five-year fixed rate with no early repayment charges.
The property carried no existing mortgage or other secured borrowing. The landlord wanted to release equity for the work, and Mercantile Trust assessed the application individually against the property, rental income and the borrower’s circumstances.
The case met the lender’s 125% debt service coverage requirement. Income evidence consisted of an assured shorthold tenancy agreement and a bank statement showing a recent rental payment, and the lender required no further proof of income for this application.
“For this landlord, it was about accessing the funds to make improvements to their rental property,” said Tara Evans, chief executive of Mercantile Trust. “We took the time to understand the case and had the rental evidence we needed, which helped us keep things moving.”
“It’s always good to see a straightforward case progress smoothly,” she added. “We were pleased to help the customer move from documents issued to completion in just four working days.”
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