The past few years have seen an emerging market of specialist lenders serving the commercial & residential investment property markets which cannot be found on the High Street. 2XL has strong relationships with them and the majority only accept business introductions from accredited professional introducers like us.

Interestingly, often when we mention their names to clients they are neither aware of them or familiar with their names. When would 2XL use them? The following are the main reasons why a borrower would not be introduced to a well-known High Street name but to a specialist lender;

• Borrower requires interest only facilities. Up to 10 years available on residential investment property.
• Rental income is insufficient to cover capital repayments and only interest can be serviced.
• Extended repayment term required. Specialists can offer up to a 30-year term.
• A borrower will exceed age 75 at maturity of a facility. Up to age 85 is acceptable.
• Commercial property leases are of a short-term nature; typically mainstream lenders require longer leases whereas the specialists will take a much wider view.
• Residential investment property requires refurbishment prior to letting. Mainstream lenders require a property to be income producing before they will lend, whereas specialists do not.
• Borrowing requirement is of a short-term nature.
• Property is subject to HMO licence.
• A borrower has had previous credit related issues.

Many investment property borrowers were affected by the last recession but are highly experienced. There are lenders who will take a pragmatic view on the previous history.

The above is not exhaustive and there could be other factors which determine why a transaction requires a specialist lender. 2XL will always be pleased to discuss any situation and provide impartial advice.