The interesting case of the Buy to Let landlord and the blip


  • Business owner Tony, wanted to remortgage his Buy to Let property in order to invest in additional properties

  • Our underwriter was able to quickly understand the issues and process an offer

  • High street lenders had issues with his income

  • Previous missed payments meant he had a blip on his credit record


Tony Jones runs his own business in Hove, Sussex and over the last few years had invested some of his earnings in property. With a small portfolio of rental properties. Tony wanted to remortgage in order to release equity, so that he coud purchase a further property. 

The issues 

Tony's previous missed payments serveral years ago meant that he has a minor blip on his credit record. Although he was now up to date with his payments. 

He paid himself a salary as an employee of his limited company, but also recieved dividends as the owner of the business. This combination of salary and dividends caused issues for some lenders. 

Curtis Jay at the Buy to Let Club says: 

"It doesn't matter if an application is for a Buy to Let investment property or for a standard residential mortgage: the deal still needs to be a comfortable fit for a lender. Anomalies, such as minor historical credit blips and an income that doesn't conform to the norm can be enough to turn an accept in to a decline. 

With a specialist lender that manually underwrites cases, this deal went through to complete successfully." 

The solution

Tony's mortage application was packaged by Curtis Jay at the Buy to Let Club. He explains: 

"In many ways, this was a very straightforward application, but the issues with the historcal credit blip, the missed salary and dividend payments meant that for many lenders, Tony's application was not acceptable. 

I spoke to Pepper Money and their underwriter was able to quickly understand the issues and proceed to an offer. 

Tony was offered an 80% LTV 2 Year Fixed Rate mortgage and the deal is now in the process of completing." 


This case study is based on criteria in effect at the time this case was submitted and reviewed by Pepper Money. We reserve the right to change or amend our criteria at any time. All our stories are based on real cases but the names have been changed.


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