Find out how you can help ensure that your buy to let application and property purchase completes as quickly as possible, so you avoid the 3% stamp duty surcharge.
The application for your buy to let mortgage is with the lender and no doubt, you are keen for it to complete before 1st April when the 3% stamp duty surcharge kicks in. You may think that the process is out of your hands and of course, as your broker, we will work as hard as possible to get your application processed in time.
But there are things you can do to help ensure that the application and property purchase completes as quickly as possible. Here are a few pointers…
Respond as quickly as possible to information requests
Hopefully by now the actual mortgage application has been submitted with supporting documentation (i.e. ID, payslips, SA302, utility bills) but in order to make a decision lenders often require additional information such as:
Surprisingly, supplying bank statements with the application is not a standard requirement with some lenders. Lenders which request bank statements subsequently are often looking for clarification of particular income and expenditure.
When submitting an application, you are required to inform the lender of all lines of credit. Sometimes, the credit check will reveal some credit that has not been disclosed, so the lender will want more information.
Lenders usually like borrowers to be on the voter’s roll. If for any reason you are not on it, they will want to know why. They may also ask you about others registered at the same address, to see what matches what you have put on the mortgage application form.
Chase, chase, chase your solicitor
Hold ups often happen at the legal stage so it’s very important to ensure that your solicitor hasn’t gone to ground. Two of the most common delays are:
In addition to making sure that your solicitor instructs the searches in a timely manner, you must also keep chasing them for the results. This is incredibly important because the time it takes for a local authority to process a search is very inconsistent up and down the country. As far as anyone can tell, it’s a postcode lottery - you might get a search done in six days or six weeks. Actually, you might get the searches back in 48 hours but you get my point.
Clearly this inconsistency across the councils is not at all helpful and according to the Property Codes Compliance Board (PCCB), the regulator for the Search Code of Practice, certain councils are delaying housing sales due to the “very poor service” they provide.
Certificate of Title
It is very important that you get your solicitor to send the COT to the lender. Without a Certificate of Title no funds can be released. The COT is a legal document in which your solicitor certifies to the lender that all matters relating to you and the property are acceptable, that there are no onerous covenants or lack of rights of access or services to the property, and that, in the opinion of the solicitor, the property has a good and marketable title. The COT will also specify the completion date on which the funds are required.
Keep in touch with us
As you broker, we work with you to manage your application from start to completion – that’s what you pay us for. Therefore, it is imperative that you keep in touch with us. Do we have the right daytime phone number for you? Do you prefer to be contacted by email? Are there times when we can’t contact you? Are you going on holiday? Have you got information to impart to us that could speed up the application? Is there anything you don’t understand?
Keeping in touch really will help to push your application through in time.
If you have any questions you can call our main line on 0845 345 6788, or your dedicated consultant mortgage broker using their direct dial.
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23rd February 2016