Specialist lender Rely has approved a £160,000 buy-to-let mortgage for a first-time landlord purchasing an £865,000 London property, after the application was rejected by another lender.
The loan, representing a 20% loan-to-value ratio, was structured as a two-year fixed rate product. The property, located near London Bridge, generates projected rental income of £2,000 per month.
Saleability concerns
The initial lender declined the application citing concerns about the property’s saleability, despite its location in central London. The broker reported surprise at the rejection given the low loan-to-value ratio requested.
Rely conducted a desktop valuation rather than a physical inspection, allowing the application to progress more rapidly. The case moved from submission to offer within six days.
Adrian Moloney, group lending distribution director at Rely, said: “This case demonstrates the importance of assessing each application on its individual circumstances. By taking a closer look at the property and using the tools available to us, we were able to provide a straightforward solution and deliver the speed the broker and customer needed.”
Market context
The case highlights divergent approaches among lenders in the buy-to-let sector, where regulatory pressures continue to affect landlord decisions. First-time landlords face particular scrutiny from mainstream lenders, with specialist providers often filling gaps in the market.
Darren Small, director at Eddge Mortgages, noted: “As the property had already been declined elsewhere, speed was crucial. Rely took a common-sense approach, and the application process was straightforward, with excellent communication throughout.”
The transaction demonstrates the role of desktop valuations in accelerating buy-to-let applications, particularly for properties that meet specific criteria. The approach has gained traction among specialist lenders as the buy-to-let sector faces ongoing policy discussions.
