Who We Are
Robin Mortgage Design is a whole of market mortgage brokerage and we are experts with Buy To Let mortgages. Mortgage brokers who are whole of the market have access to the largest pool of mortgage providers such as banks, building societies and pure mortgage lenders. When you choose us, you’ll be treated as an individual from the very start. We’ll take the time to understand your situation and propose suitable options for your Buy to Let Mortgages.
On this page, we’ll help you understand how you could get a mortgage and what you can do to prepare for your application. If you’d like to speak with an actual human at any point, then we can get you in touch with your personal mortgage consultant who will be on hand to guide you through every stage of your journey.
Buying an investment property is a big commitment whether it’s your first one or the 50th! Although they’re bought for many reasons, the majority of people buy an investment property to increase their annual earnings so getting the right advice is really important.
On this page, we’ll cover some of the different types of Buy to Let mortgages; but to get started, here are some of the facts to consider when buying an investment property:
The additional fees such as stamp duty and lender fees
Is the property fit for purpose and does it have the legal EPC certificate for renting?
Is the property licensed if it’s an HMO (House of Multiple Occupancy)?
Is there a good demand for rental properties in the area?
What effect will the new rental income have on your tax position?
Some of these questions will need advice from tax advisers or solicitors; having a quality mortgage adviser on hand will give you the support you need, as well as highlight where you may need additional, specialist advice.
So, let’s go through some of the Buy to Let options.
First Time Buyers
If you’re considering buying your very first investment property and you’re also a brand new first-time buyer, lenders will take different views on whether or not they’ll consider your application, there isn’t a one size fits all approach.
Some of the criteria that the lender will consider when making a decision will be around your income levels, credit history, whether you are buying as a limited company, your age, and so on….We always recommend you speak to a professional mortgage advisor to help you navigate through the various options
From a personal point of view, a portfolio of properties could be any number of properties that you own, but the question here is: what do lenders see as a portfolio landlord?
Well in simple terms a portfolio landlord is someone who owns 4 or more mortgaged buy to let properties. Properties that unencumbered ‘mortgage free’ are typically discounted and then it depends on how many are in personal names or held in a limited company.
HMO's & Specialist Properties
House of Multiple Occupancies (HMO's) are properties that are rented to more than one family and this includes student lets. Specialist lending also includes multi-unit, part commercial and sometimes you are letting the property too.
These types of properties are popular due to the potential returns, but make sure you do research in the local area before committing to your purchase.
Limited Company Buy to Let
So, what is a limited company Buy to Let? Well, it’s where you set up a UK limited company for the purpose of renting and managing property. Ltd company lending has become more popular in recent years, due to changes in the tax imposed on profit from land and property. Although we are experts in mortgage advice, we’re not experts in tax so it’s best to get specialist tax advice before committing to a limited company purchase.
Can I still get a Buy to Let with bad credit?
If you have adverse credit, there could still be options, but this really does depend on your credit history. The best thing you can do is to seek advice from a mortgage adviser and gain access to your credit report. Your dedicated adviser will then be able to let you know your options and when you'll be able to get a mortgage. There are specialist lenders that can help in certain cases, but there are no guarantees.
Here are some of the considerations if you've got a tainted credit history:
Bankruptcy and Individual Voluntary Agreements (IVAs) are widely acceptable once they’ve been discharged for 3 years. If you have a larger deposit to put towards a property, then other options may be available if they were discharged more recently than 3 years.
Debt management plans are widely accepted as long as they’ve been in place for 12 months or more and you’ve conducted the account excellently.
Defaults and CCJs are widely accepted, however, there are many different solutions and options here. So even if you have something outstanding, lenders are willing to take a look.
Missed payments are widely accepted but it does depend on what the missed payments were for, the reason for the missed payments, how many payments have been missed and how long ago they were. Typically, lenders prefer your payments to be no more than two months behind without needing to look at more specialist mortgage products.
Payday Loans are widely accepted if they were paid off over 12 months ago. They can be frowned upon when applying for a mortgage as they are considered a last resort option for borrowing. In all cases, the lender would need to understand why the loan was taken out.
Whatever situation you’re in when it comes to bad credit, it’s always best to get advice from a mortgage advisor, ideally someone who is able to review all your options by searching the whole market.
Our 8 stage simple guide of the house buying process
If you are considering the purchase of a property, you should always seek advice from a qualified mortgage adviser. They will guide through the process and make a recommendation based your preferences and affordability. This is always a great first step to ensure you can view properties with confidence.
A decision in principle is the first step to getting a mortgage. At this stage, lenders will evaluate your finances and credit history to be sure you can support the mortgage. Once agreed, you can then move to the next step of the process. The decision is not a guarantee of a mortgage, as you are still subject to underwriting and a valuation on the property, but it is definitely a positive step.
Now you have approval for the mortgage, you can start to seriously consider the properties you want to buy. Once you’ve found the one, you can make a formal offer to the agent who is selling the property and provide your agreement in principle to show that you are able to proceed. If your offer is approved, let your mortgage adviser know.
Your adviser will now review the mortgage and protection options again and once you are happy, will submit the application to the lender on your behalf. During the application process, there may be some fees payable, such as the cost of a valuation. At this stage, your adviser can instruct a conveyancer on your behalf, if you haven't appointed anyone.
At this step of the process, the lender will review all your information to make a formal decision on whether or not to offer the mortgage. You will need a valuation to be carried out, which the lender will arrange, but you can upgrade this if you would like a more in-depth report. This process can take anywhere from a couple of days to a couple of weeks, but you should be kept up to date with the progress throughout.
This is a really exciting step for any buyer and a positive step closer to owning the property, as the mortgage provider has agreed the requested loan. You’ll now be provided with an offer document and copies will be sent to all the relevant parties. The mortgage offer will generally be valid for 3 to 6 months and can usually be extended if required.
Behind the scenes your chosen conveyancer will be doing all the legal searches on the property, liaising with your lender, our team and the vendor’s conveyancer. They provide a hugely important part of the process, so it’s always best to choose someone you can trust. If you are unsure about which conveyancer to use, please let us know and we can recommend someone from our trusted network.
The exchange of contracts is the final commitment when purchasing your property and usually only takes place when the whole chain is ready and all legal work is complete. You’ll agree a completion date, which can be simultaneous or at a later date, and then finally you complete! This is when you pick up the keys to your brand-new home.
Why use a mortgage broker?
This is a really good question. Like most occupations, people can be very good at what they do with some being the ‘jack of all trades. But normally, if you want something doing well, you choose an expert. A mortgage broker is no different.
Mortgages and associated services are what we do, and we have the experience, knowledge, and qualifications to help secure your mortgage from the whole of the market, not just a select panel, like some agents, comparison sites, and single ties such as banks.
So, if you’d like honest, unbiased mortgage advice, suited solely to you, then a mortgage broker is just what you need.
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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP THE REPAYMENTS ON YOUR MORTGAGE
The information contained in this website is subject to UK regulatory regime and is therefore intended for consumers based in the UK.
Not all forms of mortgage lending such as certain Buy to Lets are regulated by the Financial Conduct Authority along with some additional related services, such as Conveyancing. A full disclosure document will be provided to you.
If you are considering securing additional debts against your home: Think carefully about securing other debts against your home. Your home may be repossessed if you do not keep up repayments on a mortgage or other debt secured on it.
Some links on this website will take you to third party websites. Robin Mortgage Design have no control over and are not responsible for the content of other sites.
*some services are by provided as a referral to a third party company. No personal information will be shared with such companies without your prior permission. Robin Mortgage Design have no control over these companies and cannot be held accountable for their service or advice.
Robin Mortgage Design is a trading style of Robin Partnership Ltd whom is an appointed representative of HL Partnership Limited, which is authorised and regulated by the Financial Conduct Authority. The registered Office of Robin Partnership Ltd is 22 South Street, Castlethorpe, Milton Keynes, Buckinghamshire, MK19 7EL. For more information please refer to the FCA register https://register.fca.org.uk
Robin Mortgage Design charge a broker fee which is only payable on mortgage offer. The precise amount will depend upon your circumstances however a typical fee is £395.00 and the maximum that could be charged is £1,495.00