Terrible time with council tenant and shock at how law treats landlords15:32 PM, 9th January 2019
About A week ago 40
I’m in the midst of an application (on my own – am not using a Broker) for a further advance and am reaching out to other Property118 forum members to learn more about their experiences.
Having read through several related topics on Property118 I had a vision that this would be a simple (ish) process so long as the figures all matched up and that the Mortgage provider and their Underwriters approved.
My intention has always been to secure a 2nd Buy To Let once the further advance goes through.
Also, for reference, the current rental income covers the property value by the 125% which is a requirement of the Mortgage provider – given the 5.89% interest rate they put in place to cover risk. Our joint salary income is also way above the minimum £25,000 per annum criteria .. so there should be nothing getting in our way.
However, having since applied (for my first ever further advance btw) in April 2015 it’s now mid August and I’m beginning to wonder if this mythical further advance will ever go through.
The current hold up has been caused because the Underwriters have queried as to what value property I intend to buy next and what rental income I believe I could achieve.
Hypothetically, if I were able to release £25,000 through a further advance then I cannot realistically purchase a second BTL which is greater in price than £100,000 (based on a typical 75% LTV ratio). Surely some basic maths could have answered the Underwriters own question? Anyhow, I’m not here to bash Mortgage providers and their Underwriters – although I’d love to right now!
Ideally, I would like some discussion around the average duration it takes a typical further advance to complete based upon your own experiences. Is 4+ months way too long to be waiting on a further advance completing? Do you too get silly queries from Underwriters (as above) which have delayed your application(s)? Are there any tips on how to ‘fast track’ further advances in future? Are there any mortgage providers who you would steer clear of? Have you even been so frustrated that you’ve switched Mortgage provider because of a slow/bad experience?
Also, one such tip (to kick start this thread) from my own further advance application would have been to have setup a current account (purely for all BTL financials) with my BTL Mortgage provider (Woolwich/Barclays in this instance). This would have meant that I didn’t have to print off bank statements each month from my current account provider (Natwest) then drop them off (by hand) to my Mortgage Advisor each time they requested ‘just another thing we need from you before we can progress your further advance’.
Let me know your thoughts …
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