Case Study –Buy-to-Let Remortgage | Decline Overturned

Property Value	£250,000
Loan Amount	£149,000
Location	Sittingbourne
LTV	59%
Achieved Rate	5.29%
Completed	January 2023
Adviser	Courtney Flockhart

The Client

Our client, a portfolio landlord sought to transition to a new rate, as the existing one was nearing its expiration. Without acquiring a new rate, the client would have been subjected to the lenders Standard Variable Rate (SVR), which would have been a substantial increase from 2.79% to 8.29%.

The Solution

We successfully identified a lender who did not place undue emphasis on the background portfolio, allowing us to secure the full amount requested by the client to complete his remortgage without needing a personal cash injection. However, we encountered a hurdle before the offer stage, as it came to light the bank had neglected to conduct a necessary check during the application submission process. This oversight pertained to the background company structure, which would have led to the application's rejection. In this instance, we appealed the decline, highlighting that the responsibility for this issue lay with the bank. As a result, the bank acknowledged its fault and agreed to proceed with the lending process.

The Henry Dannell Difference

Upon identifying the error made by the bank, they declined to lend, necessitating a thorough process involving seven stages to obtain the necessary agreement for proceeding. Despite the initial refusal from our main contact, we persevered and escalated the matter. We engaged with the head of credit risk to achieve the desired outcome, thereby averting a situation where our client would have been subjected to a rate exceeding 2.5 times their current rate.