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Brokers - is this placeable?

Retired_Mortgage_Adviser
Retired_Mortgage_Adviser Posts: 590 Forumite
500 Posts Name Dropper
edited 5 February 2020 at 9:54PM in Mortgages & endowments
I've just had a call from a young mortgage broker relative of mine who asked my advice with regard to placing the following case -

The client (a portfolio landlord) is a 100% shareholder of company A.

Company A is the 100% shareholder of company B.

Company B is an SPV (with the right SIC code) under which the client holds 7 other BTLs, none of them are mortgaged.

The client wants to buy a new build flat through Company B on a 50% LTV mortgage but my acquantiance is struggling to place the case because of the way it's structured.

I know you can't name any lenders but does anyone know if there is indeed any lender who will lend to an SPV that has another Ltd Co as the sole 100% shareholder which itself has the client as the 100% shareholder?

Comments

  • Retired_Mortgage_Adviser
    Retired_Mortgage_Adviser Posts: 590 Forumite
    500 Posts Name Dropper
    edited 7 February 2020 at 1:03PM
    FYI eventually (after a lot of calling around), two lenders were willing to consider this - Masthaven and Vernon.
    Apparently the client was unhappy with the rates presented. :D
  • ACG
    ACG Posts: 24,690 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Vernon only lend in the local area, but their rates are not bad? 

    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • ACG said:
    Vernon only lend in the local area, but their rates are not bad? 

    The development is in the NW.
    Exactly, I looked up their rates and they don't seem bad at all. But clients sometimes have unrealistic expectations!

  • ACG
    ACG Posts: 24,690 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Very true. 
    You may find they come back in a week or 2 if nobody else can do anything better.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • I've seen this scenario on another forum.
    I am a mortgage broker and IFA. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
  • I've seen this scenario on another forum.

    Yes, Deleted_User very kindly PM'd me suggesting cherry. I wish I'd known of it a few years ago!
This discussion has been closed.
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