By Chris Morgan, Lead Financial Adviser & Mortgage Commentator
Unusual Mortgages are the UK’s leading Specialist mortgage adviser for applicants looking to utilise their equity in their properties as security. We look after both individuals who may be looking to buy further property and Buy To Let investors who may be looking to grow their portfolios.
Many of the applicants we meet are unable to meet all of the Income Evidence requirements or strict criteria of high street lenders, due to their restrictive lending rules around Multiple Mortgages and Portfolio Buy To Let Mortgages.
These are some of the key areas in which we are able to offer advice. We have strong relationships with many off high street lenders, such as private banks, niche lenders and complex mortgage providers. Many offer broker exclusive products, that are tailored to our clients needs.
Criteria & Product Restrictions
- Multiple Mortgages – Some lenders are unfriendly towards Let To Buy and Buy To Let borrowers currently, as they are restricting the outlay of their capitalisation for those with more than one mortgage.
- Portfolio Landlords – All Buy To Let portfolio lenders now have additional rental / stress test calculations to meet, which can be a major obstructive issue, especially for higher rate tax payers.
- British Expat Clients – Those living abroad face problems currently raising Buy To Let finance, as this is a highly specialised area of mortgage lending and considered a higher risk for lenders.
- Capital Raising Purpose – Lenders have become a lot more sensitive around the declared purpose of any equity being released from both residential and Buy To Let properties, as they are guarding and protecting their capitalisation.
- End of Mortgage Term Approaching – Bradford & Bingley, Citi Mortgage, Heliodor, GMAC Residential Funding, Jasper Mortgages, Landmark Mortgages, Mortgage Express, Northern Rock, Roselite Mortgages, Rosinca, Seberite Mortgages, Topaz, UCB Home Loans, UK Asset Resolution. Whilstree (TSB) are all mortgage company names that may be familiar to those who were granted their mortgage without proof of income in the past and are now finding their lender is unprepared to extend their mortgage term.
- Properties Turned Down by High Street Lenders – Flats above commercial premises, properties with two kitchens or more, properties with a percentage split of commercial or agricultural use, properties with two living units combined on one set of title deeds.(Annex and Main Home), properties which are used to host Airbnb in some way.
Income & Tax Related Restrictions
- Utilising Property Income – Some lenders do not take property income into account when calculating mortgageable income on SA302’s, as they prefer not to lend to property professionals. Also lenders are still to catch up on Airbnb as property income.
- Utilising Other Income – SA302’s can be interpreted in many ways by lenders, when calculating mortgageable income in particular the use of the Other Income section.
- Dividend Income – Some mortgage lenders can be very difficult over Director remuneration and the way that they declare their income, director salary and dividend income need to be presented correctly.
- Minimum Proof of Income – First Years Trading as self employed is a difficult time to get a mortgage, as the amount of financial evidence accumulated is minimal in relation to lender criteria.
- Missing Proof of Income – Missing SA302’s or accounts is a major issue as vast majority of mortgage lenders require income evidence. We can advise you how to utilise the proof of income that you do have and to avoid the strictest lenders.
- Impact of Tax Status – Higher & Lower Rate Taxpayers are treated differently for Buy to Let and Portfolio lending, with Higher Rate Tax payers coming off particularly poorly in regards to rental income calculations currently.
- Stress Testing Portfolio’s – Individual & Portfolio applicants are treated differently by mortgage lenders, with those with four properties or more treated differently, to those with three properties or less. Either way lenders have made it more difficult for existing landlords to borrow money.
If you would like to know more about the types of Mortgages that we arrange you can find a comprehensive “A-Z of Mortgage Issues” on the right side bar of this page. If you would like to know about a Mortgage that is not on the list then be sure to contact us using the details at the bottom of this article.
15 Minute Mortgage Assessment
Unusual Mortgages offer a 15 minute free mortgage assessment over the phone for anyone that has been turned down for a mortgage elsewhere. We will confirm if the decision you were given is correct and assess your options across all of the lenders on our manual research list, from which we tailor bespoke solutions for our clients.
If you have been turned down for a mortgage or are worried about approaching lenders due to the way you have been treated in the past, why not give us a call. Within 15 minutes you will know if your hopes and aspirations are a reality, with a sound opinion from the most experienced mortgage broker in the United Kingdom at placing “Unusual Mortgages”.
If you require more information on Complex Mortgages, Multiple Mortgages, Buy to let, Portfolio Landlords, Self Employed or Adverse Credit Mortgages you can contact Unusual Mortgages on UK 0845 474 3075 or International +44 1404 45397, email at enquiries@unusualmortgages.co.uk