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Posts Tagged 'remortgage'

Portfolio Landlords – BTL Remortgage

As a professional landlord it’s not just about the rate when choosing a BTL remortgage, it’s also speed if you are approaching your current lender’s variable rate. If you have a quick lender and competitive rates you are on your way to a speedy completion for your Buy to Let Remortgage.

These are some of things a lender can do to speed the process up:

  • Title Insurance
  • Electronic Signatures on Application Forms
  • Open Banking
  • Relaxed view on Independent Legal Advice

Ideally the lender should also offer the following:

  • Product Transfers
  • Extensive solicitor panel
  • Ability to repay extra each year

When comparing mortgages always add up all the costs including interest, all lender fees, legal costs and providing Independent Legal Advice for the personal guarantee.

Also look at the information they need and how long will it take you to prepare. The list includes:

  • Portfolio – will it meet the lenders LTV threshold, with most it’s 75% although some are less and others more
  • Rental Calculation across portfolio
  • Business Plan – doesn’t take long and lenders have their own format
  • Cash flow – the longest to do but not many lenders ask for it
  • Bank Statements confirming income on the portfolio
  • Tax Year Calculations, SA100 and Tax Year Overviews for at least two years
  • Limited Company Accounts for at least two years
  • EPC – are they all E or better. If F or G a lender may ignore the income but still include the debt

We’ve been doing this type of mortgage for many years so please contact us if you need help on your next BTL remortgage.

Case Study for New Build Flats

A Cheshire based company had built four apartments with total land and build cost of £200,000 and the properties were valued at £440,000.

Lenders had been approached by our clients and all were either not interested as they were property developers, or wanted them to leave some of their money in the project so they only had had access to a maximum loan of £180,000. This was seriously going to affect their future projects and expansion plans.

By getting to know their medium and long-term strategy we presented this to a specialist property lender. By outlining their plans the lender was satisfied that the company had a long-term viable plan which they wanted to support and offered 75% of the value to them. So we have two happy directors who now have an extra £150,000 to go towards their next project.

Remortgage a BTL within 6 months of purchase

 

These are the most common reasons we see for remortgaging within 6 months with our lenders that do this – Repay bridging finance, raise funds for another project or get a lower rate.

 

Searchlight Finance Limited is registered in England and Wales No.07929050 Searchlight Finance Limited is authorised and regulated by the Financial Conduct Authority and is entered on the Financial Services Register (http://www.fca.org.uk/register) under reference 743220. The FCA do not regulate Business Buy to Let Mortgages or most Commercial Mortgages and Bridging Finance. ICO Number Z3109319. Your property may be repossessed if you do not keep up repayments on a mortgage or any debt secured on it.