LendInvest Buy-to-Let Remortgaging:  LendInvest entered 2022 with a strong focus on buy-to-let remortgaging.

For mortgage advisers, the opportunity was not simply about replacing an existing loan. It involved understanding landlord objectives, rental affordability and the evidence needed for a complete application.

A remortgage may look straightforward. However, the quality of the outcome often depends on what is established before the case reaches underwriting.

At a Glance

During early 2022, LendInvest promoted technology-led buy-to-let remortgaging for landlords and property investors.

Advisers still needed to assess:

• Rental income and interest coverage.
• Property type and condition.
• Individual or limited company ownership.
• Wider portfolio performance.
• The purpose of any additional borrowing.
• Supporting documents and credit history.

Technology could reduce administration. It could not replace accurate case assessment.

Why Buy-to-Let Remortgaging Mattered in 2022

Many landlords who refinanced during earlier regulatory changes were approaching another review point.

At the same time, property investors were considering whether to:

• Secure a new mortgage rate.
• release capital for another purchase;
• refinance refurbishment costs;
• move borrowing into a different ownership structure; or
• adjust their portfolios after changes in costs and taxation.

This created opportunities for advisers who understood both mainstream and specialist buy-to-let lending.

A landlord’s objective had to be established before discussing a product. A lower rate could be valuable, but it was not the only measure of suitability.

Fees, rental coverage, early repayment charges and the proposed mortgage term could materially change the overall result.

How Technology Supported the Application Process

LendInvest used digital processes to support its underwriting and application journey.

Open Banking could help lenders review financial information with the applicant’s permission. Digital identity checking could also reduce reliance on manually exchanged documents.

The practical benefit depended on preparation.

Technology could process information more quickly, but incomplete or inconsistent information could still delay an application. Advisers therefore needed to check names, addresses, portfolio figures and declared income before submission.

Today, LendInvest continues to provide buy-to-let products through intermediaries and operates an online mortgage portal. However, current products and criteria should always be checked directly because lender requirements change. Advisers can consult the current LendInvest buy-to-let information before discussing a case.

Technical Points Advisers Needed to Review

Before recommending a buy-to-let remortgage route, an adviser needed to consider several connected factors.

Rental coverage

The expected rent had to meet the lender’s interest coverage calculation.

The applicable percentage and assessment rate could vary according to:

• The selected product.
• Tax status.
• Ownership structure.
• Property type.
• Lender policy.

This meant that a property could appear affordable at its existing payment but fail a new lender’s stress test.

Borrower structure

Applications could involve an individual landlord, an existing company or a special purpose vehicle.

The structure affected underwriting, documentation and potential guarantees. Advisers also needed to avoid presenting a limited company as automatically more suitable.

Tax advice should come from a suitably qualified tax professional.

Portfolio position

A single remortgage could not always be assessed in isolation.

Portfolio landlords could be asked to provide details of property values, mortgage balances, rental income and monthly commitments. Incorrect portfolio data could affect affordability and delay underwriting.

Connect Network advisers can review wider lender access and case support through our adviser services for mortgage brokers.

Property and tenancy

The adviser needed to establish:

• The property type.
• Current tenancy arrangements.
• Expected market rent.
• Licensing requirements.
• Whether material works had been completed.
• Whether the property met the lender’s security requirements.

HMOs, multi-unit properties and unusual construction could require different criteria from a standard single-household buy-to-let.

What Made a Remortgage Case Easier to Place?

A well-prepared case gave the lender a clear explanation of the borrower, property and transaction.

Useful preparation included:

• A complete property portfolio schedule.
• Current mortgage statements.
• Evidence of rental income.
• Tenancy documentation.
• Proof of income where required.
• A clear explanation of capital-raising purposes.
• Company documents for corporate applicants.
• Evidence of deposit or funds where relevant.

Submitting documents without explaining the transaction could leave the underwriter with unanswered questions.

The strongest application told one consistent story.

The Mortgage Network Perspective

Lender technology is useful, but advisers also need practical support around case placement, compliance and changing criteria.

A complete mortgage network should help its appointed representatives understand where a case may fit before an application is submitted.

Connect Network supports advisers across mainstream mortgages, buy-to-let and more complex property finance. Our specialist mortgage network support can help advisers research possible routes while retaining responsibility for suitable advice.

Landlords seeking advice can also use the buy-to-let mortgage broker directory to compare advisers by expertise, location and language. Connect Experts is the adviser directory for firms and advisers within the wider Connect Group.

A Practical Lesson From the 2022 Market

The 2022 remortgage market showed that speed and judgement serve different purposes.

A digital system may shorten part of the application journey. However, good advice begins before information enters that system.

It begins with understanding why the landlord is refinancing, how the property performs and whether the proposed mortgage supports the longer-term plan.

Mortgage advisers considering broader network support can learn more about joining Connect Network.