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Creating a bespoke refinancing solution for a complex buy-to-let portfolio

Our clients’ wishes

Mrs A is a UK resident and national who was looking to refinance six buy-to-let (BTL) properties within a freehold block. She wanted to move away from her current lender, who had offered her high rates and was asking for additional security in the form of cash, property, and an investment portfolio. Mrs A hoped to secure a more favourable rate and to have the properties assessed individually, given their strong security, low loan-to-value ratios, and good rental yields.

Although Mrs A’s wealth stemmed from an inheritance in a jurisdiction deemed high risk, she was completely transparent about this and provided all necessary documentation to prove the clear source of her funds so that we were able to conduct full due diligence. The properties were also held within a complex overseas trust, which added an extra layer of complexity to the situation.

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Our clients’ situation

The rental income from the properties was not quite enough to fully cover debt servicing after various deductions. This is something we’ve been seeing more often with rental properties. To address this, Mrs A offered two years of cash cover for the shortfall, which helped provide additional comfort. She was also very open about her global wealth and income, as well as the reasoning behind the trust structure, which was in line with HMRC guidelines.

We worked closely with Mrs A, her broker, and her advisers to gather the necessary documentation and fully understand the complexities of her case.

The rate we were able to offer was lower than what Mrs A’s current lender had proposed, providing her with a more competitive option.

Our client's outcome

By working closely with Mrs A and consulting with both internal and external experts, we were able to gain a clear understanding of her situation and the structure of her assets. In the end, we successfully secured approval for a total debt of approximately £5 million in a timely manner.

The rate we were able to offer was lower than what Mrs A’s current lender had proposed, providing her with a more competitive option. This outcome not only met her refinancing needs and timescales, but also laid the foundation for a future relationship.

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Get in touch with a member of our team to find out how Nedbank Private Wealth can help you achieve your financial goals and objectives.

Email our credit specialists directly at [email protected] or call +44 (0)1624 645000 to speak to our client services team.

Any examples of investments and structures used are for illustrative purposes only. This case study does not constitute an invitation or inducement to buy any financial investment or service. None of the content constitutes advice or a personal recommendation. Individuals should seek professional advice, based on their jurisdiction and personal circumstances, before making any financial decision.

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