Eligibility Check

The eligibility criteria for obtaining a buy-to-let mortgage is one of the most significant parts that you should know about before submitting any application you make to a lender.

Mortgage lenders usually review your application based on a set of criteria to ensure that you are capable and trustworthy enough to own this property.

These criteria can include your annual income and age, however, these can vary depending on the lender you are dealing with.

Many banks such as Natwest and Barclays have a free “Buy to Let Mortgage Calculator” in which you can check how much you can borrow towards your mortgage as well as how much your monthly payments may end up being. These banking tools are incredibly useful for keeping track of your accounts.

Agreement in Principle

You may need an agreement in principle/mortgage in principle to make an offer, it can help your final application. An AIP will inform you of how much you can borrow from the bank without actually affecting your credit score.

This can be an incredibly useful tool for you to use when making your final decision on whether you would like to buy this new property, giving you a preview of your financial status post-purchase and how much money you will need overall.

An important thing to note is that this is a vital step in the process and is needed for you to acquire your full mortgage - this is something we submit before completing your full mortgage application.

Discuss With Your Local Advisor

Contacting your local mortgage advisor to talk through your plans should be next on the list of requirements to obtain a buy-to-let mortgage.

You will be able to book an appointment to get some advice and guidance on what steps to take next, the buy-to-let mortgage rates and your affordability as well as finding the best deals and providing support along the way.

They will discuss your credit report with you to inform you if there will be any issues with your eligibility. This will take into account credit cards, unpaid loans, and missed payments among other things.

Mortgage Application

Your next step is to finally submit your mortgage application. The process of creating your application begins with your first mortgage meeting with your local advisor, the agreed lender will build you a portfolio of information that you are required to give them - mainly about your finances and the property you would like to buy.

Existing landlords may be required to share some bank statements to show the rental income of their other owned properties.

Mortgage Offer

The final thing left to do once your application is complete and submitted is to wait for your reply with an offer!

This can usually take between two and four weeks - in which time, the mortgage lender will have completed a full credit check and will carry out a valuation of the property.

Conclusion

In conclusion, the process of purchasing a buy-to-let property can be a very different process from buying your first home, the two types of mortgage can be a confusing ordeal to submit without a mortgage advisor's help.

However, there are simple steps listed above that can give you a general idea of how you can apply for such a mortgage and, better yet, make it a successful one.

At LTC Mortgages, we can guide you through the application process, sharing our years of expertise with you to increase the chances of a successful application. We can also work to find the best interest rates for your circumstances. Contact us today to get the ball rolling on your new buy-to-let property purchase.