Quick turnaround mortgage application

bigheadxx

I am looking at buying a property via auction and wondering which High Street lenders are the best for speedy processing of applications? I have no credit issues and the "specialist" lenders and bridging finance companies have all told me to try the High Street first as it would be much cheaper.

I've spoken to brokers but obviously they won't divulge the lenders to me. My main problem is that I still have a property to sell but I probably have a deposit of 15-25% for a second property and can maintain 25% in my current property which could be rented out, more than covering the mortgage by more than 20%.

Many thanks

ACG

There is more to contend with than just the quickest lender based on what you have said.

Many lenders would class your current Mortgage as a commitment regardless of the fact you intend to let it out, some would need to see it let out for 3-6 months before disregarding it as a commitment, which is obviously a bit of a catch 22.

There are some lenders who will prioritise your application as it is an auction purchase. There are also lenders who state that it is taking 2-3 days to assess paperwork, but it does not say that they usually request 3-4 lots of paperwork.

I am not on here to try and make our job sound like a brain surgeons, but why would you not stick with a broker under the circumstances? There are pitfalls that could catch the average person out and you also need things to move quickly - who better to keep things moving than someone who uses the lenders on a regular basis and can call in favours if needs be?

bigheadxx

ACG wrote: »

There is more to contend with than just the quickest lender based on what you have said.

Many lenders would class your current Mortgage as a commitment regardless of the fact you intend to let it out, some would need to see it let out for 3-6 months before disregarding it as a commitment, which is obviously a bit of a catch 22.

There are some lenders who will prioritise your application as it is an auction purchase. There are also lenders who state that it is taking 2-3 days to assess paperwork, but it does not say that they usually request 3-4 lots of paperwork.

I am not on here to try and make our job sound like a brain surgeons, but why would you not stick with a broker under the circumstances? There are pitfalls that could catch the average person out and you also need things to move quickly - who better to keep things moving than someone who uses the lenders on a regular basis and can call in favours if needs be?

I understand the process is a bit more tricky with an auction purchase and it being a second property. i really want to have an indication of what rates a broker would be able to get for my circumstances and several brokers have told me different things regarding renting out my current property. Ive never seen the need to use a broker and always secured a very good deal, no disrespect to mortgage brokers.

Rather than trawl through every mortgage provider it would be much simpler if somebody just said "bank xyz is your best bet"

ACG

I am a realist and I understand not everyone will want or need a broker, it makes no odds to me which route people go down so long as you get a result you are happy with.

There is nothing you have said that makes me think you will not get normal rates - probably not best buys, but nothing scary.

With regards to the current property, every lender is different so there will be some who will accept a letter from a letting agent to confirm what the expected rent will be. But it is then trying to tie that up with a lender who can pull their finger out and anything else that crops up in the factfind.

I understand in the past you have been fine without a broker, but this is the sort of scenario where a good broker comes in to their own.

Im not being awkward, but we (brokers) can not name lenders based on a limited amount of information - we are opening ourselves up to regulatory issues if we do.

I am not saying you can not do this on your own, I just think you will do it without the headaches using a broker and potentially at better rates as you will be relying on the odd lender that someone on the internet names, where as brokers will pull up a list of the best deals and then work through that list checking criteria.

minimike2

bigheadxx wrote: »

Rather than trawl through every mortgage provider it would be much simpler if somebody just said "bank xyz is your best bet"

So you want a broker to do their job, for you to go off and cut them out so they do it for free?

You say on one hand you've never needed a broker. Then you say you want someone to tell you what lender is best? Well, no one can tell you that without doing a full fact find and assessment of your circumstances.

So which do you actually want, a broker, or sort it yourself?

I assume you are happy to go into work on Monday and work for free?

bigheadxx

ACG wrote: »

I am a realist and I understand not everyone will want or need a broker, it makes no odds to me which route people go down so long as you get a result you are happy with.

There is nothing you have said that makes me think you will not get normal rates - probably not best buys, but nothing scary.

With regards to the current property, every lender is different so there will be some who will accept a letter from a letting agent to confirm what the expected rent will be. But it is then trying to tie that up with a lender who can pull their finger out and anything else that crops up in the factfind.

I understand in the past you have been fine without a broker, but this is the sort of scenario where a good broker comes in to their own.




Im not being awkward, but we (brokers) can not name lenders based on a limited amount of information - we are opening ourselves up to regulatory issues if we do.

I am not saying you can not do this on your own, I just think you will do it without the headaches using a broker and potentially at better rates as you will be relying on the odd lender that someone on the internet names, where as brokers will pull up a list of the best deals and then work through that list checking criteria.

Thanks, I have spoken at length with a broker and I have also ensured that my current lender will offer me a new BTL mortgage. I really wanted to sell my current property so it was a more straight forward transaction. Realistically the auction is not an option but putting an offer in if it dint sell would be but Id want to be sure about the financials first.

Thrugelmir

bigheadxx wrote: »

Thanks, I have spoken at length with a broker and I have also ensured that my current lender will offer me a new BTL mortgage. I really wanted to sell my current property so it was a more straight forward transaction. Realistically the auction is not an option but putting an offer in if it dint sell would be but Id want to be sure about the financials first.

You ideally need to formalise your plans. Would applying for a BTL mortgage on the auction property simplify matters?

bigheadxx

Thrugelmir wrote: »

You ideally need to formalise your plans. Would applying for a BTL mortgage on the auction property simplify matters?

No, I intend to live in it and it needs a lot of work doing.