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The Client 

The client was seeking to remortgage an unencumbered Buy to Let property in order to release funds to repay an investor who helped the client to initially purchase the property.  There was an agreement/contract in place to repay the investor within an agreed timeframe. 

The Scenario 

The property had no working kitchen or bathroom, meaning that the property is classed as not mortgageable. 

With regards to the mortgage purpose to repay an investor who was actually the client’s father, this had to be referred to the underwriter for further assessment.  The mortgage amount was falling short by £25,000 to repay the investor and posed challenges to place with lenders. 

The Solution 

As the property had no working kitchen or bathroom and deemed not to be mortgageable, the best placed lender we secured was happy for the client to complete the necessary works before the completion took place and the valuation of the property was to be performed only once works had been completed.  

The mortgage amount wasn’t enough to repay the investor in full, and the client fell short by £25,000 and the lender wanted the client to confirm how the remaining £25,000 would be repaid to the investor.  The client provided and explanation to the lender and the lender was happy to proceed. 

The lender also wanted to ‘follow the money’ that was provided by the investor for anti-money laundering purposes and requested that the investor was to provide bank statements showing the money trail.  The investor was able to produce bank statements evidencing the trail of funds.  

In addition to this, the lender also required a bank statement from the investor to show the source of funds paid to the solicitor for the Buy to Let purchase and this was also provided. 

Based on all of the above the lender was able to proceed.   

The client had approached other mortgage brokers and they informed the client they were unable to help due to the nature of the case. However, at Commercial Finance Network we achieved what other brokers couldn’t and this resulted in a very happy client. 


Whole of market Mortgage Brokers with CeMAP qualified Advisors are always able to look at creative ways in which to solve solutions such as this. 

If you have any questions relating to Buy to Let Mortgages, contact us today to speak directly with one of our CeMAP certified Mortgage Advisors. Call us today on  03330 166 600. Alternatively, please complete this short online form one of our Advisors will call you right back. 

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