The case involved the purchase of a one-bedroom flat in Glasgow, valued at £110,000. While the property was situated in a highly desirable area and delivered a strong rental income of £725 per month, equating to an impressive 7.9% yield, it faced a significant hurdle due to its proximity to commercial premises, including a pub on the ground floor.
Initially, valuation concerns around the surrounding commercial mix meant the case struggled to progress. However, thanks to recent enhancements to our Property Plus proposition, the application was revisited with a fresh approach.
Properties of this type can offer landlords attractive returns and portfolio diversification opportunities but can often prove more difficult to finance through mainstream lending routes, particularly where valuers take a more traditional view of marketability.
Initially, the case faced obstacles at valuation stage due to the surrounding commercial presence. However, following enhancements to our Property Plus proposition, developed in collaboration with valuation partners Connells and e.surv, the application was revisited under updated criteria.
Our revised approach enables valuers to take a more holistic view of specialist properties, recognising that while they may fall outside high street lending norms, they can still represent strong, in-demand investment opportunities for landlords.
As part of the process, the case was seamlessly transferred onto the Property Plus product, allowing it to progress without disruption. The property was subsequently valued by Connells at the agreed purchase price, enabling the landlord, an experienced portfolio borrower, to proceed with the acquisition.
The case also reflects our commitment to evolving our propositions in response to broker feedback, ensuring more cases can progress where there is clear investment merit, even if they fall outside traditional lending criteria.
Ultimately, it reinforces our focus on supporting brokers with greater flexibility and helping landlords access funding for suitable specialist properties, continuing to deliver on our aim of making mortgages happen.
Reagan Hamilton, Mortgage and Protection Consultant at Clear Vision mortgages commented:
"Foundation was the only lender that met all the requirements, so when the case was initially declined on a standard product because the property was above commercial premises, I panicked as I had nowhere else to place it. Thankfully, the underwriter suggested switching to Foundation’s Property Plus range, and the application was accepted without any issues. The deal then went through smoothly."
Fiona Roberson, Regional Account Manager at Foundation added:
“Thanks to our enhancements to our Property Plus proposition, we were able to revisit this case and help the broker get it over the line for her client who was struggling to find an alternative home for it.”
Ben LeRoy, Client Services Director at Connells said:
" Working closely with Foundation, and seeking to support them achieving their lending goals, we were able to get this case over the line by taking a holistic and robust approach to properties that remain in strong demand among landlords. I believe it was Foundation’s Property Plus proposition that ultimately made the difference, which enabled them to say yes where other lenders might have declined.”
Nathan Goodridge, Head of Sales added:
“This case demonstrates the value of taking a specialist view on property. Assets like this can deliver higher yields than standard buy to let properties, making them an attractive option for landlords looking to strengthen portfolio performance when assessed appropriately.”
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