It’s tougher than ever to get a buy to let mortgage at the moment. With stricter controls around who gets finance and who doesn’t’, interest rates rising for the first time in 10 years and Landlords with 4 or more properties being hit hard by a lengthy application process. It can seem nigh on impossible to get finance on your investment properties.
This 5 Step Guide should help you jump through hoops faster:
- Analyse your properties – every single property you own needs to have a property analysis that goes with it. You need to be able to show that your properties can cover the cost of your mortgage, plus the new tax changes and any other expenditure you incur and still make a profit. Keep a record of this so that you can give it to your new lender on demand.
- Keep Your Accounting Records Electronically – Make sure you have all of your accounts and payslips for the past 3 years. Keep them stored in an electronic file so that you can get to them easy. It takes 5 mins a month to keep this up together, but it’s worth it for the ease of getting finance.
- Write a Short Personal Bio – Yes that’s right! Lenders now want to know how competent you are at being a Landlord. So make sure you have a personal bio together that can show that. Even if you haven’t been a Landlord before, what skills do you possess that would make you an awesome Landlord.
- Get Rid of Assets That Aren’t Making You Money – Banks don’t look favourably on your having to prop up investments. If any property or investments you own aren’t making you money, get them into peak state and sell them. You can’t be dragging something along that is bringing you down.
- Make Sure You Have An Awesome Credit Rating – Keep checking Equifax and Check My File to see what your credit score is. If you need to improve it, taking out small manageable amounts of credit such as a small credit card or mobile phone contract can really help boost your rating. Also remember to be on the electoral roll, again that can improve your credit rating. You need to show you are good with money and these are ways of proving it. Even if you don’t need to get lending right now, taking action to improve your credit rating is vital!
These 5 steps should dramatically improve your ability to get finance. You simply need to take action to make sure you have the right information, so get started today, what are you waiting for?
Without the ability to get finance it’s going to be impossible to continue building a profitable portfolio, so trust me this is a necessity!
If you have looked at this list and are now thinking ‘OHMYGOODNESSS, Natasha, I can’t even fathom how to do this stuff’, then never fear. I have the solution over in my Members Club and will give you 1:1 mentorship as well to make sure you can complete each of these 5 steps and more…