The Buy-to-Let Mortgage Procedure

When you apply for a buy-to-let mortgage the information that you provide to the lender, via your broker, will be processed electronically to confirm your identity and to check your credit history. Providing your application meets the lenders criteria a valuation will be instructed and simultaneously, references may also be requested, for example' Employer's reference, Accountants reference, existing lenders reference etc.

Once all the required information has been received by the lender and checked by an underwriter a mortgage offer will usually be issued.

It is now up to the solicitor to exchange contracts. They cannot do this until you can prove that you will have enough money to complete the purchase. This usually means that a mortgage offer is required prior to exchange of contracts. Also, the solicitor is responsible for ensuring that you are purchasing what you think you are purchasing. This will include obtaining local searches, making sure that all previous mortgages are cleared, checking boundaries etc. The solicitor will also be responsible for handling the purchase money, i.e. receiving it from the lender and paying it to the vendor. In the case of a refinance the solicitor will also pay off the old buy-to-let mortgage with the new mortgage money.

Once contracts are exchanged, the property is contractually yours. You must, therefore, insure the property at this point. Use established buy to let insurance brokers to minimise costs, click here if you would like us to refer you to our recommended supplier.

Completion

This usually takes place about one week after exchange of contracts. Once completion has taken place you can let the property, subject of course to its condition. If the property is vacant at the point of exchange of contracts, it is in your interests to negotiate a longer period between exchange of contracts and completion, together with negotiating access to the property so that you can decorate it. The vendor does, however, have the right to refuse this.

Monitor the property value so that you can capitalise on opportunities and keep in touch with The Money Centre to release further money through remortgaging or further advances, in order to fund deposits on more properties.

We will be delighted to refer you to sources of finance, cost effective methods to Find a Tenant quickly and secure your cash flow by ensuring you receive your Rent On Time.