A few weeks ago, Santander were the first to finally make their move and made a series of rates cuts for those looking to remortgage or take out a product transfer, including buy to let deals!
For investors, it's a very welcome step.
However, if you've secured a deal recently, you'll no doubt be aware that money laundering rules are tightening by the day so when it comes to securing lending, you'll need to jump (and possibly backflip) through a number of hoops.
Here are our top tips to ensure that you're in the best position to secure funding once you've identified a deal.
Be Prepared!
Make sure that all of your documentation is prepared and ready to send.
Think about ID. Take good quality photographs of your ID and have them ready electronically, you'll no doubt have to upload them to a portal or send them via email.
Proof of funds/deposit (we'll come onto that soon).
Credit reports, proof of address, solicitors’ details. Consider whether your solicitors have the capacity to handle your case quickly and if not, do you have an alternative? Does your lender require your solicitor to be on their approved list?
Understand what product you need
Some mortgages are considered special products and it pays to know what type of product you need for each strategy.
For example, applying for HMO or SA mortgages is slightly more involved than a standard BTL mortgage. If the property is of low value, it might be lower than some lenders lending thresholds.
Do your research well in advance and understand what product you need. Make sure that you're across the different requirements and assessment criteria for each of your potential lenders.
When it comes to mortgage brokers, make sure that you fully understand where their expertise lies in terms of the products they offer and the lenders they have relationships with.
Some brokers are fantastic at securing BTL mortgages, others deal with just HMO mortgages, maybe you need a bridging lender.
Do your due diligence and create a team of specialist brokers that you can call upon quickly, whatever the strategy is.
Funding
This is a biggie... As we said above, money laundering deals are tightening by the day and getting this wrong could destroy your whole deal.
Solicitors and lenders will likely want to see the audit trail of where your funds or deposit is coming from. Red flags for them will be things such as multiple transfers between accounts or not being able to pin point exactly where lumps sums have come from.
Keep your banking really simple. If you do need to make transfers, label them so it's really clear on your bank statements. If you're using angel funds, let them know in advance that they might need to provide their bank statements too. Keep a copy of all of your completion statements to hand (maybe in the same place as your ID) so that you aren't scrambling around on the back foot to find them.
Investing in property can be A LOT! If you'd prefer to hand over the reins to someone else and not shoulder the stress yourself, book a call today.
We specialise in hands free investing, so you can enjoy the rewards, without the hard work.
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