Top 3 reasons borrowers unwittingly cause delays to their BTL mortgage application

Hold up with your application? James Bolton, Head of Case Management highlights the top reasons why borrowers unwittingly cause delays to getting their buy to let mortgage completed. Find out what you can do to keep your application on track.

Number One

The borrower fails to provide sufficient information about their earnings. Lenders need to see proof of your income; however, all lenders have slightly different requirements. The application form will state what proof is required but if you are unsure please ask us for clarification. Generally, you will need to provide:

Employed:
Last three months’ payslips and a P60

Self-employed or company director:
Two years’ SA302s. Please note if you have over a 25% shareholding in the business you may be asked to provide business accounts.

An SA302 is a receipt for your tax return from HMRC. Please note that you have to request these documents from your tax office and they can take a couple of weeks to arrive, so it is worth requesting them every time you submit your tax return.

Retired:
Last three months’ pension payslips or annual statement (depending upon how your pension provider supplies these details).

Further proof of income:
We try not to ask for more information than we think will be needed but occasionally, a lender will require additional proof such as:

  • Notice of any state benefits you have been awarded such as working tax credits or disability living allowance.
  • Court awarded maintenance payments

If you are a company director you might be required to submit the last two years’ accounts for your limited company. Do make sure that the accounts have been prepared by an appropriately qualified professional.

Remember, it is always worth while keeping your paperwork up to date and readily available.

Number Two

The borrower does not supply supporting documentation (proof of earnings, proof of identity, etc.) required by the lender in a timely manner. The quicker you can provide us with all the necessary documents, the quicker the mortgage application will be processed.

As your broker, we will submit the application form and supporting documentation to the lender on your behalf. These days many documents can be provided via email although we will let you know where we need to see sight of the original.

Number Three

The borrower does not complete the mortgage application form fully! Sounds daft doesn’t it but you’d be surprised at how many times forms are returned with information missing. If the form asks for details it is because the lender wants to know this information and will not proceed without it. If you are unsure, do ask us, we are here to help you. If we have to return the form to you it will delay the process by a few days at the very least, so please complete it as well as you can, and sign on the dotted line (lots of borrowers forget that too!).


Here at Mortgages for Business we have a clear ethos on the way you should be treated when you apply for a mortgage through us. You’ll be assigned a dedicated mortgage consultant and case manager who will deal with your application from start to finish, so if you need a helping hand with your application don’t be afraid to give your mortgage consultant a call – that’s what we’re here for! 

You can contact them directly or by using the main number 0345 345 6788. We look forward to helping you.

 

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