It’s easy to navigate the mortgage process when you have a broker that really understands your situation and budget. We’ll pull together all the information you need, spending time with you to get everything just perfect.

We’ll ask you questions like:

• What are your plans for the future?
• What type of job do you do?
• What’s your income and pay structure?
• What are your family circumstances?

We’ll then research the mortgage rates on offer and look at the market to provide you with clear, relevant information you can use with confidence.

That way, when you’re ready to make a decision, you can do so knowing that you’ve got all the facts.

Our mortgage advisers work closely with you to save you time and give you the very best chance of a successful application.

During the application process, we’ll:

• Talk you through all your options with a free consultation
• Recommend the right mortgage for your situation
• Check how much you can afford to borrow
• Help you to gather the information and documents you need for your application
• Help you prepare your application for submission
• Submit your application to the lender
• Liaise with the lender, solicitors and estate agents.

Once your mortgage has been offered, we’ll support you all the way through to completion.

We’ll work hard to build a lasting relationship with you.

So you’ll always have someone you trust to help with any queries or requirements in the future.

We want to make buying a property as simple as possible. The process may sound complex, but we take away all the stress and manage all the paperwork for you.

Here’s an overview of what happens:

• First, we’ll work with you to set your mortgage budget
• You start the exciting bit ‐ viewing properties
• We help you make and secure an offer on the place you want
• You instruct a solicitor to handle the legal side of things
• We finalise and submit your mortgage application to your chosen lender
• They will survey the property to make sure the mortgage you want is reasonable
• Once they are happy with the valuation, they’ll make you an official mortgage offer
• Your solicitor completes the legal process so you can exchange contracts and pay your deposit

That’s it! The home is now yours and it’s time to collect the keys.

Getting a mortgage is important, but it doesn’t have to be complicated. We’ll handle every step for you, deal with all the paperwork and take away all the hassle. Here’s a quick overview of how the process works and how we will help you:

• We’ll talk to you in detail about your situation and budget to work out the maximum you can borrow. This will help make sure you’re looking for properties in the right price bracket.
• We’ll explain all the documentation we’ll need to put together to support your application.
• Once you’ve found a property, we’ll find your ideal mortgage and manage the application process for you. We’ll make it as simple as possible.
• The lender then carries out a survey to assess the property, and their underwriter will review it all to confirm it’s affordable for you. This might include asking for a reference from your employer or accountant
• Once the lender’s happy with all the checks, they’ll make a formal mortgage offer. Then we’ll help you complete the legal details and exchange contracts with the seller. We’ll be there to talk you through every single piece of paper so you don’t need to worry about a thing.

Want more detail about the process?

There are two main reasons for remortgaging:

• To borrow additional funds
• To get a better mortgage deal with a new lender, normally when your current deal expires

Sometimes you might want to do a combination of the two.

The benefits of shopping around

It can be very tempting to simply renew with your current lender because it might seem like the easiest option. However you could be missing out on a really competitive deal, so it’s always worth seeing what else is out there.

We can help you with everything, whether you want to borrow more from your lender, or switch to a new one. We’ll do all the analysis for you, comparing what your existing lender can offer with other deals on the market.

We’ll keep it really simple for you, streamline the whole process and offer straightforward advice on the benefits and risks of switching. For example, many lenders offer a free legal service with their remortgage deals, saving you money. However, if you need to complete quickly you may be better off selecting your own solicitor. We can help you with that.

For great advice on every aspect of remortgaging and what it means for your particular situation, just ask.

Top tip: Plan ahead

Get in touch with us around six months before your existing mortgage deal expires, or well before you need additional funds. That gives us plenty of time to find the best deal for you.

This means buying a property based on the specifications, but before it’s built. It can take up to 12 months ‐ sometimes longer ‐ for an off‐plan property to be finished and ready for you to move in.

When buying at this very early stage, it’s a good idea to ask your developer when you’d be expected to complete. This is because you might want your mortgage lender to extend or renew their offer, sometimes more than once. You can end up paying multiple additional fees for re‐valuation.

When you’re buying off‐plan, it’s a good idea to speak to your mortgage broker to find out what to ask your developer. We can advise you on everything you need.

What about off‐plan mortgage offers?

Many mortgage offers are valid for six months. Some lenders’ timescales are longer, and others will offer allowances for extending mortgage offers, as long as your circumstances don’t change.

After a certain period, your lender may ask their surveyor to conduct a re‐inspection or re‐valuation of your property. This confirms that the property’s expected value is still in line with the amount you need to borrow.

We give you exclusive access to special new build services from some lenders. These can streamline the whole buying process and improve the likelihood of a successful purchase. They can be particularly helpful when your estimated completion date is far in the future. Give us a call to find out more. We’re always happy to help.

What about deposit requirement and loan to value (LTV)?

Normally the value of a property can be assessed by looking at how much previous owners bought it for. This sort of information isn’t available for a new build though, particularly if it’s in an undeveloped area such as a new suburb.

To increase their security, some lenders will limit the maximum loan to value (LTV) they offer for new build properties. In some cases, additional limitations will also apply if you’re buying a flat. This means that to secure a mortgage in these cases, most lenders will need a larger deposit.

We give you comprehensive access to lenders who will offer you a mortgage on a new build property and those who accept smaller deposits. If you have a 5% deposit, it’s also worth considering the help to buy schemes.

Get in touch and we can talk you through it all.

Arranging a buy-to-let (BTL) mortgage is similar to any other mortgage, and you can read details in our ‘How does the mortgage process work’ guide.

There is one key difference though, based on the fact you plan to rent the property out.

If you want a mortgage for a property you will live in, a lender will look at many factors, including your personal income and expenditure to help decide if they are happy to make you an offer.

However, with BTL the lender will also take into account how much you will be able to rent the property out for.

There are some important decisions you need to make when deciding to buy a property to let, but we can guide you smoothly through everything. It’s different for everyone, so here’s a really simple guide to work out what’s best for you:

Market, regulation and mortgages

Being a landlord can be a great way to increase your income, or to acquire a property as a longer term investment. And in order to make it as profitable as possible, it’s vital to get clear advice from a professional mortgage adviser. That’s where we can help. We know the latest UK legislation and regulation inside out and can advise you on the detail of your mortgage requirements and put you in touch with tax specialists who can guide you on the most tax efficient way of purchasing a rental property.

Being confident you can afford it

Lenders traditionally calculate how much you can borrow by looking at the property’s value and the expected rental income.

It’s standard practice to build in a buffer too. T his allows for hidden costs such as the property sometimes being empty, paying estate agency fees and spending on maintenance. It is calculated by using what’s known as the interest coverage ratio (ICR). The ICR determines the amount the lender would like the rental income to be, to cover the mortgage and other costs.

Recent regulation changes mean these calculations have got stricter. Lenders will also ‘stress‒test’ the mortgage, to make sure that an increase in interest rates won’t cause any problems and you will still make a profit. The minimum stress test rate is either 5.5%, or 2% above the actual mortgage rate ‒ whichever is higher.

Here’s an example based on a £200,000 mortgage, using a typical ICR of 145% of mortgage interest and stress testing using an interest rate of 5.5%. The minimum rent required works out at £1,329 per month.

Taking personal income into account

This is known as income top‒slicing. Some lenders will factor in your personal income if the stress-tested monthly rental calculation explained above falls short. They will look at how much you earn compared to all you spend, including your residential mortgage, household expenditure and rental property costs.

If you have extra income after covering all your outgoings, these lenders will combine it with expected rent to calculate the maximum you can borrow.

New build normally means it either hasn’t been built yet, or it’s been completed but never sold or occupied (including show homes).

Many mortgage lenders also count new builds as:

• any conversion (such as a townhouse into flats)
• a substantially renovated or extended property
• homes built in the last couple of years

New builds are a popular choice, particular for first-time buyers. The government also supports new developments with the Help to Buy schemes, and many housing associations offer you the option of shared ownership.

In basic terms, this is where one person agrees to buy a property off‐plan, but sells it on before completing. If we talk about Buyer A and Buyer B, this is how it works:

• Buyer A exchanges contracts and puts down a deposit.
• Before completing they agree to sell to Buyer B, typically at a higher price.
• Buyer A “reassigns” the contract to Buyer B.
• Buyer B now has the rights to complete the transaction.

If you buy a property on a reassigned contract you could end up paying less that the latest market price. For example, the original buyer could pay £275k, and the property could go up in value to £350k before they decided to sell on the contract. To make a quick sale, they could offer it to you for £325k, so you both get a good deal.

You also don’t have the long completion date often associated with off‐plan purchases, but it does come with additional risks. Many lenders won’t offer a mortgage based on contract reassignment, so it’s important to seek detailed legal advice from your solicitor and discuss it with your mortgage adviser.

We give you access to a number of lenders happy to consider contract reassignment purchases, with some limitations. If you want to take this route, feel free to give us a call and talk it through. It’s important we know all the details of your purchase, so we can make sure you get the best advice for your particular circumstances.

Can you buy from abroad through contract reassignment?

New build developments are an attractive option if you’re overseas and want investment property in the UK.

We give you access to lenders who’ll consider applications from non‐UK citizens and UK ex‐pats for both standard off‐plan purchases and contract reassignments.

If you need to transfer funds to the UK, we recommend our currency exchange partner. Just call us for more details ‐ we’re always happy to talk things through.

There’s a common myth that the self-employed find it hard to get a mortgage. While the options will vary, there are a number of competitive solutions. To learn more, it’s essential to talk to a knowledgeable mortgage adviser.

A number of lenders specialise in self-employed mortgages and have developed a range options that rely on different criteria.

This can include:

• Lending against your most recent year’s income, rather than an average of the last two or three years
• Lending against your company net profit – rather than just salary and dividends to reach a potentially more positive lending amount
• Consideration of your daily rate if you’re a contractor.

Lenders will need to see specific documentation if you’re self-employed. This will depend on your circumstances and we can advise on exactly what it means for you. It’s best to discuss this with us as soon as possible to give you enough time to pull everything together.

Sole trader, director, contractor or partner?

The type of self-employed role you have affects how a lender assesses your suitability. Here’s a brief overview of the main considerations:

Sole trader

Most lenders ask for a minimum of two years’ of your full trading accounts and personal HMRC tax overviews. They’ll typically also take the average of either two or three years’ of your net profit before tax.

Some lenders will consider an application if you have only one full trading year, though this depends on your circumstances. For example, have you have switched from employed to self-employed in the same line of work?

In addition to tax overviews, you’ll need to provide bank statements showing your trading income. If you use a separate account for business transactions, you’ll need to be able to show these account statements to your lender.

Director

A lender may class you as employed, but normally only if your share in the company is small. The threshold varies from 5% upwards, but if it’s 20% or more, most lenders will consider you as self-employed.

The lender will usually require additional documentation to show that the business is solvent, and some will take into account your share of profits, in addition to your salary and any dividends.

Contractor

While contractors are typically company directors, many lenders acknowledge the fact that these arrangements are not the same as a corporate company director. This is reflected in their tailored affordability assessments.

Some lenders will assess contractors using the same affordability assessment as any other company director. However, where this limits the borrowing capacity, there are other options available. The lender can undertake an affordability assessment as if you’re employed and reference the gross contract daily rate as income. This will be subject to certain conditions, including history and continuity of contracts.

Partner

Lenders take a range of approaches to assess income and affordability for partners in firms. The options available to you will depend on a number of factors. These include the particular structure of pay, the percentage equity holding in your partnership and the size and nature of the partnership itself.

There are tailored options available for partners of different sized firms, ranging from small local businesses to large multi-national firms. You’ll need your compensation/drawings/reward statements for the latest year. Ideally, you should have details of the previous one to two years too. You will also need to show details of how you structure your remuneration within the partnership. Lenders may ask for a reference from a senior or managing partner in the business, depending on the circumstances.

If you already own 4 or more properties, or have the ambition to build your portfolio, there are now additional regulatory requirements for lenders to factor in to their assessments. The regulation is not prescriptive but some examples include the lender’s relationship with the borrower, how much experience the borrower has as a landlord and a view of the borrower’s overall property portfolio.

We have many clients who are classed as ‘portfolio landlords’ and have expertise in helping clients refinance and build their property portfolios, with strong relationships with all the key lenders in this market.

Stamp Duty Land Tax (SDLT)

SDLT is tax you pay when you buy a property. There is a standard calculation when you buy your main home, which goes up the more expensive it is. The same applies when buying further properties, but includes an additional 3% rise.

You need to pay this supplement whether it’s a second home, a new home if planning to rent out your current one (known as ‘let to buy’), or a BTL purchase, even if you’re living in rented accommodation yourself.

You can’t avoid the 3% by saying you own one property and having your spouse buy the second in their name. You and your spouse are considered to be one ‘unit’.

Income tax

You are liable to pay tax on income earned from rental property. This is income tax if it’s a personal purchase, or corporation tax if you own it through a limited company. The amount depends on rental income, mortgage interest and other tax-deductible costs.

It’s important to get professional tax advice on this before making any decisions about purchasing your BTL.

Accountants

Many landlords use an accountant. It’s an additional cost, but they can often help you reduce the tax you need to pay, saving you money in the long run. Ideally you want someone who is a specialist in property tax and has experience advising landlords.

Tax relief affects your decision on this. Between now and 2020, the amount of tax relief for BTL landlords will gradually change until the entire mortgage payment only attracts the basic rate (currently 20%). Here’s a summary of how the transition is happening:

What does that mean for me?

Buying a property in your own name

These changes will not affect you if you are a basic rate tax payer and will remain one once all taxable income including your rent has been accounted for.

You will pay more income tax under the new rules if you are a higher or additional rate tax payer, or will become one once your rental income is accounted for. This will mean either reduced profit, or potentially a net loss after tax.

Buying a property via a limited company (special purpose vehicle or ‘SPV’)

This option can be more tax efficient for higher and upper rate tax payers. However, remember that being a limited company comes with other responsibilities. You will be a company director and need to abide by the Companies Act 2006, there are likely to be additional admin time and costs involved, and professional fees may be higher.

What does this mean for my mortgage?

At the moment a few lenders will consider offering a mortgage on a limited company basis, and their interest rates and fees will typically be higher than what they offer to personal landlords.

Whether it ultimately works out cost effective for you depends on your income, mortgage rates, and fees, along with capital gains tax, inheritance tax and income from dividends.

It’s up to you to follow legislation, including regular inspections and maintaining tenants’ rights. You must handle repairs and maintenance, rent collection, tax payments and other legal requirements correctly. Items to keep up‒to‒date include:

• Annual gas safety inspection
• Energy Performance Certificate
• Property and landlord insurance
• Liability insurance

You can either manage everything yourself or hire professionals to take care of it for you. For example, you can avoid all the hassle of day‒to‒day management by taking on a fully managed service from your letting agent. Our sister company Foxtons can do exactly that for you.