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From rejection to success: Saving a time-critical property investment for a South African couple

We had the pleasure of working with a successful South African couple with dual nationality who were looking to expand their UK property investment portfolio. While living full-time in South Africa, they had invested in a buy-to-let property in the UK and had only £50,000 remaining on the mortgage. They wanted to release equity from this property to fund the purchase of an exciting new investment property in London.

Their goal was to achieve a 65% loan-to-value across both properties, which would require a total mortgage of £580,000. They wanted a financing solution that would allow them to leverage their existing property equity while securing their new London investment opportunity.

Unfortunately, time was working against them. After approaching their existing lender and a major international building society, they experienced significant delays and ultimately received disappointing rejections after nearly a month of due diligence. With the vendor of their target London property becoming increasingly impatient, there was a risk that the property purchase could fall through.

Our clients' situation

When they came to us, we took the time to thoroughly understand their financial situation and we worked closely with them to develop a solution tailored to their needs. This collaborative approach proved essential given the complexity of their situation.

Mr P worked in the charity sector, which often means enhanced due diligence is needed, while Mrs P operated her own successful business, drawing both regular income and annual dividends. This mixed employment structure presented some challenges that required careful assessment and a genuinely nuanced understanding of their combined financial position.

The main challenge we needed to address was that the rental income alone would not cover the proposed mortgage facilities on a standalone basis. However, we were pleased to discover through our thorough analysis of both clients’ income streams that they had the capacity to service the mortgage payments, even during potential tenancy absences. Mrs P’s business was particularly impressive, showing an excellent growth trajectory, which significantly strengthened their overall financial proposition and gave us confidence in their ability to successfully manage the additional borrowing.

What made this case particularly rewarding to work on was how organised and responsive our clients were throughout the process. They provided all required documentation promptly and comprehensively, which allowed us to submit their credit proposal within just five working days of our initial meeting. Our credit team delivered a positive decision within two days of submission, successfully securing the London property purchase and providing tremendous relief to both our clients and the vendor.

Mr and Mrs P are now happily working with their solicitors to complete both the refinancing of their existing property and the purchase of their new London investment.

Our clients' outcome

We structured the financing as two complementary mortgages, each designed to align with different aspects of their financial strategy and provide them with optimal flexibility for their investment goals.

The first facility of £300,000 was arranged as a 5-year tracker over a 17-year term, which adjusts with market rates and provides flexibility for overpayments and lump sum reductions without penalty. This structure proved ideal for their situation as it allows them to reinvest rental profits or business bonuses whenever their cash flow permits, giving them maximum control over their debt reduction strategy and financial future.

The second facility of £280,000 was structured as a 5-year fixed rate over the same 17-year term, providing payment certainty throughout the fixed period. This portion offers them protection against future rate increases and ensures predictable monthly payments that help tremendously with their long-term financial planning from South Africa.

This dual-structure gave them both flexibility and certainty in a single, cohesive solution. The tracker facility allows them to take advantage of favourable rate movements and make additional capital repayments when their business performs well, while the fixed-rate portion provides the payment predictability that helps them manage their international finances with confidence.

Mr and Mrs P are now happily working with their solicitors to complete both the refinancing of their existing property and the purchase of their new London investment. They expressed genuine delight with both the outcome and our efficient process, particularly after experiencing months of frustrating delays and disappointing rejections with other lenders. This bespoke solution successfully allowed them to achieve their objectives while maintaining the financial flexibility they needed for future opportunities, demonstrating how the right financing partner can make all the difference.

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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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