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Our property investment expert is Jeni Browne, Sales Director at
Mortgages for Business
www.mortgagesforbusiness.co.uk
Tel: 0345 345 6788
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Question
Waiting times for buy-to-let approvals
I am about to apply for a buy-to-let mortgage having finally succumbed to the lure of being landlord by the stamp duty holiday. I wondered whether it was too late to apply in order to benefit from the tax relief, though, as I have heard many lenders have a backlog of applications to wade through.
Is there any way I can speed up the process – for example, by going direct to a lender rather than using a broker?
Answer
While there are lenders who are running very slowly at the moment, there are also many who are working largely to normal timeframes.
So, you have plenty of time to get the mortgage sorted and complete before 31 March. Make sure that when you speak to your broker, you ask them to confirm the lenders’ turnaround times, so that you don’t end up with one of the slow ones!
In terms of speeding matters up the best thing you can do to help yourself is ensure that you have all of your paperwork in order – proof of income (payslips and p60/2 years tax returns and tax overviews), three months bank statements, proof of ID and address and proof of deposit – ready.
Good luck!
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Question
Would I be able to purchase a buy-to-let?
My partner and I are considering boosting our pension and savings by purchasing a buy-to-let. I am a mobile beautician and business is doing well and my partner is a builder and runs his own company.
We have joint savings of £24,000 between us and we have no dependants. Last tax year I earned £27,000 and my partner’s profit was £42,000. Could we, in principle, be eligible for a buy-to-let mortgage on a property worth between £240k and £280k?
Answer
So yes. And no… You would be eligible as applicants for a buy-to-let, but lenders will need you to put down a deposit of at least 20% of the purchase price, which is where you are falling short. So you would either need to consider a lower valued property or increase your deposit, perhaps by taking some equity out of your home?
If you speak to a mortgage broker, they will be able to tell you what is possible based on all of your financial details.
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Question
Lowdown on the underwriters
I feel like this is a really stupid question – but I am going to ask it anyway. Do the underwriters work for the broker or the lender who provides my mortgage?
I am about to apply for a buy-to-let mortgage and the broker said they would ‘speak to the underwriters’? I am worried if they work for the broker I might be assessed as not eligible at that point, rather than getting the benefit of the doubt from a variety of lenders.
Answer
This is not a stupid question in the slightest!
We brokers often use expressions which make perfect sense to us but are utterly misleading to the client, who will (understandably) taken them on face value!
The underwriter works for the lender, not the broker. Your broker will have access to the underwriter and thus will be able to discuss your application with them, but fundamentally the underwriter is there to decide whether to lend you their employer’s money.
I hope this helps.
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Question
Expat: Can I become a UK landlord?
I am a UK expat who moved to Spain 10 years ago and have since set up my life here. I want to rent out a property in the UK so I can keep a link to my home town (Basingstoke) and wondered what kind of mortgage would facilitate this.
I work remotely for a London-based company so I don’t know how this impacts my application. Any advice on whether it is possible for me to pursue my buy-to-let plans would be gratefully received.
Answer
Well first of all, as I sit here typing this response, looking out of the window and the English rain, I can only applaud you for your very wise decision to move somewhere sunnier and warm! In answer to your question, yes, you can get a mortgage as an expat.
The rates are going to be higher than you would pay if you are onshore, but as long as that does not put you off, then you will be able to do this.
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