How to apply for a buy-to-let mortgage

Each mortgage lender will have a slightly different process for applying for a mortgage, but they will let you know what is needed and when. If you’ve used a broker to help you find a mortgage, they can apply for the mortgage on your behalf, and will let you know if the lender requires any additional information from you to support your application.

In the majority of cases, you will need to collect a number of documents to prove your financial situation, income and credit rating. Most lenders will ask you to provide any of the following documents:

Utility bills in your nameBenefits statementsMost recent three months payslipsP60 from your employerProof of identity – usually your passport or driving licence. Bear in mind that some lenders may want you to provide the actual document for their records, rather than a photocopyBank statements for the last three to six monthsAddress of the property you intend to buyContact details of your solicitorContact details of the estate agent you are buying the property through.

If you are self-employed or have more than one source of income, you might also need to provide additional bank statements as well as your tax return to prove your income.

Once your lender has all the information they need, they will start to process your application and will let you know if you need to provide any more information. The lender will then carry out checks on you and your credit history, and will arrange a valuation of the property to make sure it’s worth what you’re paying for it. They will also check if there are any issues that could reduce the property’s value, such as flooding or subsidence.

Once your lender has carried out all their checks and are satisfied with all the evidence you’ve provided to support your application, your mortgage application should hopefully be approved and you can proceed with your purchase. The timeline of application to mortgage approval can take anywhere from two to six weeks or more.

If your mortgage application has been declined, there could be a number of reasons for it, so it’s best to ask the lender to explain why you were declined. You can then understand what these issues are and establish whether there are any ways you can boost your chances of being accepted next time. Whatever you do, don’t start sending off more applications in the hopes of getting a mortgage approved, as this can have a significant negative impact on your credit score. For more information on this, have a look at our article What to do if your mortgage application is declined.

Author: wpadmin

Leave a Reply

Your email address will not be published.