Last seen on the market prior to the 2008 credit crunch, Paragon Mortgages has re-introduced its “Forward Funding Facility”.
This facility, which costs nothing to set up, is aimed at existing landlords looking to get “pre-approved” for finance. It is especially useful for time sensitive transactions, such as bidding at auction or when requesting an early completion date.
If you are looking to make a purchase, having your finances already in place, puts you in a much stronger negotiating position with vendors and estate agents.
How it works:
The process works in much the same way as a standard mortgage application, except that when you apply you don’t have a property to purchase.
As usual, you will be required to provide Paragon with the following:
- A completed application form
- Schedule of existing properties
- Evidence of personal income
- 3 months’ bank statements
- A business plan including a cash-flow forecast and net worth statement
- A clean credit record
- Confirmation of the amount of finance sought
We then submit this application on your behalf. If the facility is agreed, you have a six-month window to find a suitable property, although it is possible to extend this period if required.
Once you have found a property let us know and we will inform Paragon. You will then be required to complete a short form about the property and then Paragon will carry out an affordability check to ensure that it generates sufficient rent to meet the criteria for the requested loan amount. We can then discuss the product options best suited to your requirements.
Applicants who take advantage of the Forward Funding Facility will also benefit from a discount of £150 per property on the lender’s application fee.
This facility is available to both personal applicants and limited companies, so if it sounds of interest do get in touch today so we can discuss how it might work for you! You can call me directly on 01732 471607 or you can call the main line on 0345 345 6788.
You may also be interested in:
Setting up an SPV Limited Company
Buy to let lenders which offer mortgages to limited companies usually require the limited company to be an SPV (Special Purpose Vehicle). Jeni explains what one is and how to get one.
Common areas of concern when borrowing via a limited company for buy to let
Many landlords are now becoming more comfortable with buy to let borrowing via a limited company including the few additional hurdles this brings. However there is still a perception that the process is complicated and harder to get agreed but this is not always the case, as Gary McKenna, Consultant Mortgage Broker explains.
FAQs on Ltd Co borrowing for buy to let
Frequently asked questions on limited company borrowing for buy to let mortgages.