Loan to refurbish a property in North London prior to it being rented out

Loan amount: £520,000

LTV: 60.12%

Purpose: The borrower was buying a residential BTL property in North London and the majority of the funds required for the purchase were being provided by the borrower. Pivot were approached to provide the remainder of the funds required for the purchase, plus additional funds to conduct refurbishment on the property before it could be rented out.

Exit: Refinance onto BTL mortgage

 Interesting facts: Although Pivot’s interest was not being serviced monthly but retained within the facility, we conducted a detailed affordability assessment on whether the borrower was likely to get a BTL mortgage to repay, which was deemed satisfactory. Also, the borrower was purchasing the property with his partner, and although she was not a party to our loan, she entered into a third party legal charge as she held an interest in the security property.