Property investment in the UK has broadened significantly over the past decade.
While London remains a key market, cities such as Manchester, Leeds, Bristol, Oxford, Cambridge and Edinburgh have become increasingly central to many landlords’ growth strategies in recent years. Portfolio expansion is no longer confined to the South East, nor even the biggest cities across the country – experienced investors are building geographically diverse holdings across a wide range of different regions.
But lender appetite has not always evolved at the same pace. Still today some lenders will have clearcut geographic boundaries defining where they will and will not lend against a buy-to-let (BTL) property.
At RAW Capital Partners, however, one of the defining characteristics of our approach to lending is our willingness to assess opportunities on their individual merits and structuring loans that support them properly.
Evolving in line with broker demand
This approach is built on constant conversations and feedback with brokers. We were receiving a lot of enquiries for locations that typically come with additional complexities, so we asked ourselves whether there was a sound credit reason not to consider them.
By listening closely to brokers and analysing each opportunity carefully, we realised we were comfortable to extend our reach in a measured way where the fundamentals make sense.
Looking beyond perceived complexity
For instance, there are plenty of specialist lenders who will not lend against BTL assets in Scotland. A separate legal framework and different conveyancing mechanics can introduce complexity, particularly for lenders built around highly standardised models.
For some lenders, the response has been to step back from the market entirely, but our starting point is more pragmatic. As we already underwrite our loans on a case-by-case basis, there is limited logic in excluding an entire nation by default. The more relevant question is whether a specific transaction is well structured, supported by credible fundamentals and aligned with disciplined credit judgment.
In recent years, we have helped non-UK residents finance investment property in Edinburgh to holiday property in Scotland’s beautiful countryside.
For brokers, the practical benefit is continuity. Clients acquiring assets north of the border do not necessarily need to source an entirely new funding relationship. For portfolio landlords with properties across multiple UK jurisdictions, the ability to work with a lender comfortable operating in each of those environments simplifies their strategies significantly, as they don’t need a different lender for each one.
Partnering with local firms to build the right legal infrastructure
But a willingness to lend must be underpinned by the correct operation frameworks, particularly when different legal jurisdictions are involved.
Security creation, documentation and enforcement differ between Scotland and England and Wales, and transactions must be structured with those nuances in mind. At RAW, we have a specialist legal partner for our Scottish deals, and their expertise means that we can ensure deals are progressed with clarity and efficiency rather than becoming delayed due to unfamiliarity with local process.
This allows us to be a lot more certain in the advice we give and the offers we make, which brokers can then pass onto their clients – improving their overall offering as well.
We maintain a panel of surveyors with experience in local markets. Scotland is no exception.
Catering to asset diversity
Another thing that can cause other lenders to shy away is that regional markets also tend to bring greater asset diversity. In parts of Scotland, as well as coastal and city locations across the rest of the UK, holiday lets and short-term accommodation form a meaningful part of the investment landscape.
Some lenders remain reluctant to engage with these properties, particularly where income structures differ from traditional BTL models. Our approach, consistent with our broader underwriting philosophy, is to examine the individual case. The sustainability and demand of the location, the borrower’s experience and the strength of the overall strategy are central to that assessment.
Now, this doesn’t mean that we have an indiscriminate appetite to lend. It just means that we avoid creating blanket exclusions when a deal could be fundamentally credible. For brokers advising clients who are diversifying their portfolios or capitalising on regional demand for short-term accommodation, that flexibility is key.
A consistent philosophy across the UK
The UK property market is not uniform. Legal systems differ, regional dynamics vary and asset strategies continue to evolve. From a town house in Edinburgh or student HMO in Manchester to a London prime property or a Cornish coastal holiday let, we appreciate that assets vary greatly, just as a borrower’s financial circumstances and investment portfolios do – respecting that variety and building out processes that can properly account for it is, and always has been, central to what we do at RAW.
Ultimately, for brokers and landlords operating across the home nations, rigid geographic criteria can create unnecessary friction. At RAW Capital Partners, our ability to lend in Scotland and across the wider UK is not about expanding for expansion’s sake. It's a result of a constant feedback loop with brokers, assessing each case on its merits and ensuring the right legal and operational parameters are in place to support it properly.
In a market where complexity can sometimes lead to automatic exclusions, it allows us to help brokers deliver continuity and certainty to clients investing across the UK.