When you’re purchasing a new buy to let property, the last thing you want is unnecessary delays in the mortgage application. Consultant Mortgage Broker Charlie Potter shares his top tips for keeping your application on track.
Securing a mortgage for your property purchase is arguably the most crucial part of the property investment process, and often the lengthiest. Delays in the process can be at best, irritating, but at worst can lose you the property. Often, these hold-ups are entirely avoidable, so here’s a quick guide to help you make sure you’re fully prepared and ready to make your next buy to let mortgage application plain sailing!
Proof of Income
Failing to provide sufficient proof of income is a common cause of buy to let mortgage application delays. As different lenders have different requirements, what you provided for your last application might not be what your new lender needs, so it’s essential to read the mortgage application form carefully, or check with your broker exactly what you need to provide. Generally, lenders will ask for:
- PAYE Employees: Last three months’ payslips and a P60
- Self Employed/Company Directors: Two years’ tax returns from HMRC (SA302s). You will need to request these from HMRC, which can sometimes take a few weeks to arrive, so we recommend asking them every time you submit a tax return, so you have them on hand. If you have over a 25% shareholding in the business, you may also need to provide business accounts.
- Retired: Last three months’ pension payslips or annual statement, depending on how your pension provider supplies these details.
Additional Proof of Income: Occasionally, lenders will request other supporting documents for proof of income, including:
- Notice of state benefits you have been awarded, such as working tax credits or disability living allowance
- Court awarded maintenance payments
If you’re a company director, you may also need to provide two years of accounts for your limited company. While it’s not always essential, it is helpful if a professional accountant has prepared them. Some lenders will insist they are from a professional accountant, so speak to your broker about how your accounts need to be presented.
Providing Supporting Documentation When Requested
The second frequent cause of delays is not promptly providing supporting documentation, such as proof of income and identification. The sooner your broker has all the necessary documents, the quicker they can submit your buy to let mortgage application.
Luckily, you can now email most documents over, which is much faster than posting everything; however, your broker will let you know if the lender needs to see the original of any of the documentation.
Incomplete Application Fact Finds
You’d be surprised how many times borrower fact finds are returned to us with information missing! We know these forms can be quite long; however, all the information requested is needed for your broker to submit your mortgage application, so you must complete the form in full. We’d much prefer you asked us about sections you’re unsure of so that we can help you, rather than just leaving them blank. It’s also essential that you sign the dotted line at the end!
We recommend setting aside 30-60 minutes to complete this document in full, as this will be quicker in the long run than if we have to send it back to you to finish missing information.
All our clients are assigned a dedicated broker and client relationship manager, meaning that you have dedicated points of contact right through to the completion of your case.
Should you have any questions at any point during the process, you can contact your team who will be more than happy to help. Remember – there’s no such thing as a stupid question!
To start your buy to let mortgage application today, you can call me, Charlie Potter, on 01732 471648 or email me firstname.lastname@example.org.