Whether you’re buying your first investment Buy to Let or adding to your existing portfolio, our team will help find the best deals for you.
What is a
Buy to Let?
A Buy to Let is a type of investment from owning a property. A mortgage is taken out on a property that you want to rent out for an additional income.
These can be set up on a capital and repayment basis, combination of both or commonly “interest only” basis which means that you only pay the interest on the mortgage each month. The mortgage or amount you owe to the Lender will be paid at the end of the mortgage term, usually through the sale of the property.
The Application Process
1) Call Us - To discuss your requirements. Our specialist advisers will go through a fact-finding process with you and request documentation to help determine the right solution for you.
2) Decision in Principle (DIP) - Your adviser will discuss their recommendations with you. If you are happy to proceed, they will submit a DIP to the lender. If the lender accepts this, they will loan you the funds if the information you have provided to them during the application process is correct, subject to the valuation.
3) Application - Once the DIP has been approved, the mortgage adviser will submit the application to the lender.
4) Underwriting – Once the lender has received your application it will be passed on to the underwriters to assess. They will check and verify the information you have submitted to them.
5) Valuation – The underwriters will request a valuation on the property. This may be a physical valuation, or a desktop valuation depending on their requirements. The purpose of this is to ensure that there are no issues with the property.
6) Offer – Once the underwriters have assessed the supporting documentation and valuation, they will accept your application and issue a mortgage offer.
7) Conveyancing – On your acceptance of the mortgage offer, the lender will instruct a solicitor to arrange all the legal paperwork to transfer from one lender to the other.
8) Completion – Once the paperwork has been signed by you, your solicitor will set a date to ensure that the funds will be issued to pay your current lender and excess of funds to be paid to you.
You should be aware of the fees that may be involved in buying / remortgaging a property which may include:
Mortgage product fees subject to lender
Valuation fees subject to lender
Solicitor / legal fees
Independent valuation that you may wish to carry out
As a seller / vendor – estate agent fees