BTL borrower overexposure limits?

BTL borrower overexposure limits?

13:49 PM, 11th June 2021, About 2 months ago 11

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My husband and I jointly own a lovely Victorian terrace with 5 flats. We own the freehold (yes, in different name), as well as the leaseholds of all the flats as joint owners.

We did major renovations and upgraded to top-spec when we bought the building, remortgaged the flats and the 5y mortgages are just coming up to renewal in the next few months. I contacted our mortgage adviser and was told that no one (no high street lenders) will remortgage due to “overexposure”.

Apparently, they will not lend as we own all the flats in the building. I do recall, from the previous round of mortgaging, that lenders had a maximum number of properties they were willing to lend on within a block or street or postcode (i.e. it was their exposure as lender they were limiting). But I’ve never heard that all lenders would frown upon a borrower owning all the flats in a building – why would they if they as a matter of process limit their own exposure to a location?

We have no problems letting the properties, it’s in a desirable location of a major town, we get top dollar rents, very high-quality tenants and have an excellent rental history. I find this blanket statement puzzling. Can anyone shed any light on this please?

Many thanks



by Royston Olner

8:59 AM, 13th June 2021, About 2 months ago

I have 2 properties, exactly like yours.
Yes it is a pain, but I like having full control and no waste on management fees.
So I've accepted, we can't always get the best rates.
BM are a lender I've used up to 2 in each block. Shawbrook do the rest.
They wanted a charge over the freehold, but never bothered when it came time to complete.
Both are very good lenders, hastle free.
Good luck. Royston

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