Diary of a Buy to Let Purchase Part 2 – I've made £800 already and I haven't got the mortgage yet
The aim of today was to submit the buy to let mortgage application and sort out the business bank account - this didn’t go to plan.
Instead I spent a large part of today mulling over (*read ‘feeling ripped off by’*) the extra legal costs I am facing and, just at the point where I was about to accept it and move on, we got news of a new set of products being offered by Paragon Bank.
How much?
Better rates, I fit their lending criteria AND my solicitor can act for me and the lender meaning a saving of costs to the tune of £800. Clearly Lady Luck felt I had been good and deserved some of her special stuff… Which reminds me that this would be a good time to write my list to Santa.
Anyway, instead of submitting my application online to Kent Reliance, I set about filling out an application form (again, the thought of it is much worse than actually doing it – took 15 minutes tops) which I have duly sent over to Paragon together with my supporting documents.
Waiting 48 hours for a mortgage offer
Now this is the thing with mortgages, after all this excitement, I now have to wait to hear whether they are going to accept my application. I think I would classify this as the nail biting point of the process... And it could be middle of next week before I hear. The tension is palpable. And the estate agent is already chasing me to find out when they will get a call to get the valuation booked in. Dear God, it’s been less than 48 hours – give me a bloody chance!!!!!!!
What type of mortgage?
This is probably the time to mention the mortgage product I have chosen. Now I initially thought I wanted a five year fixed rate (to cover me for when rates go up – as a company we are very ‘for’ longer term fixed rates for all the obvious reasons). BUT this is my first buy to let and there is a possibility that it won’t be all it cracked up to be and five years is a very long time to commit to something you may end up hating.
I then swung to a two year fixed but two years just goes so fast….. and when this rate finishes there is a chance we still be mid-rate increases so I may end up with a terrible rate (assuming I am actually loving being a landlord and don’t want to ditch it).
So I have opted for a three year fixed which feels like a good middle ground – I am a Libran… hedging my bets is what I do.
Whilst I have applied for the mortgage on this rate, I have the ability to change this later without any costs as long as this is before the mortgage goes to offer, so, given that I seem to swing like a pendulum, I may change this. But for now, I am happy that I have made the right decision.
Engaging a solicitor… again
I also formally engaged my solicitor today – Thomson Snell and Passmore in Tunbridge Wells in case you are interested. We often get asked about solicitors. I love this firm and they are well versed in dealing with transactions for limited companies so for me they were the perfect choice.
Still nearly setting up a business bank account
As you can see, today was extremely productive; however, with all this going on, I didn't get round to sorting out the bank account (whoops) so I will try and do this over the weekend. Which I blatantly won’t do as we are putting up the Christmas tree and have things to do which are fun (unlike setting up a bank account which I would align with watching paint dry on the fun stakes). So this will happen next week – oh goody.
Diary of a Buy to Let Purchase
Follow Jeni as she recounts her experiences of becoming a buy to let investor for the first time.
Part 1 - It was that or a Range Rover
Part 3 - The demise of Nathaniel Pig
Part 6 - Business bank account interview or Center Parcs?
Part 8 - The method behind the madness
Part 9 - Join me in a buy to let fist pump?!
Part 10 - The silence is deafening
Part 11 - Throwing toys out of prams
Part 12 - Stuck with the Mini... for now
Part 14 - The end of my sad little tale...
Part 16 - A year on my buy to let portfolio grows by default
Part 17 - If Carlsberg made tenants - shame the same can't be said for the tax man
Part 18 - Always open the envelope
Part 20 - Buy to let mortgages and tenants are like buses
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