Darlington Building Society has completed a £54,000 limited company buy-to-let mortgage at 80% LTV for two first-time landlords buying through a newly formed special purpose vehicle, in a case that tested several criteria points many lenders do not accommodate.
The application was introduced by David Pringle of 1-2-1 Mortgages. The two borrowers, friends making their first move into property investment, were non-owner-occupiers with no previous private rental sector experience. The SPV through which they purchased had no existing properties.
Darlington considered the application under its buy-to-let criteria, which can accommodate newly formed SPVs, non-owner-occupiers, first-time buyers, and first-time landlords. The society applies no minimum income requirement to buy-to-let applications, and neither bank statements nor proof of income were required during the packaging process. A lower interest coverage ratio calculation on a five-year fixed-rate product also enabled the borrowers to achieve the loan size needed.
The case required additional assessment after property-related issues including wall ties were identified during the process. Darlington’s business development and underwriting teams worked directly with Pringle to establish which reports were needed and keep the application on track through to completion.
“Limited company buy-to-let is often seen as the preserve of well-established landlords with diverse portfolios, and many lenders tailor their solutions to that market,” said Chris Blewitt, head of mortgage distribution at Darlington Building Society (pictured).
“At Darlington, we recognise that for borrowers starting their property journey, buying through an SPV can be a perfectly sensible option. Our criteria reflect the needs of this aspiring landlord cohort and provides practical solutions to the challenges they often face. This case shows how knowledgeable Business Development Managers, working closely with underwriters and mortgage brokers, can deliver a fantastic outcome.”
Pringle welcomed the outcome. “It was an absolute pleasure to be able to discuss the case with Darlington’s underwriting team and to secure both an offer and, more importantly, a completion for my clients,” said David Pringle, mortgage broker at 1-2-1 Mortgages.
“This was a case that some lenders would deem unacceptable: a limited company buy-to-let purchase for non-owner-occupiers borrowing at 80% LTV. Despite property-related issues, including wall ties, the case was kept on track.
“We were able to discuss the requirements, obtain the suitable reports and move forward to complete on my clients’ first buy-to-let property. I will certainly not hesitate to place our next case with Darlington when appropriate. Once again, many thanks.”
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