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Home Finance Five Common Myths About Specialist Buy-to-Let Mortgages, Busted

Five Common Myths About Specialist Buy-to-Let Mortgages, Busted

For the UK’s 2.7 million landlords, qualifying for affordable finance on the High Street treads a fine line between difficult and impossible. Far from a last resort, specialist lending has become the go-to for BTL landlords looking to secure an unbeatable deal.

Even so, the specialist BTL lending sector is awash with myths, misinformation and misunderstanding. Today, we take a look at five of the most common myths about specialist BTL lending, along with the respective truths behind them:

Myth #1 – Specialist Finance is Too Complicated

First up, applying for a specialist BTL mortgage is no more complicated than applying for a conventional home loan. If anything, it can be a much simpler and more streamlined process.

This is due to the way in which specialist BTL lenders have the extensive knowledge and experience needed to expedite and accelerate mortgage applications. Whereas a typical mortgage application now takes around three months to process, a specialist BTL mortgage application can be underwritten in weeks.

Another solution is to use bridging finance for the funds needed to purchase the property, as this could be made accessible in a matter of days.

Myth #2 – Specialist Finance is for Subprime Applicants Only

Applicants with adverse credit are welcomed by many specialist lenders. But this does not mean that their products and services are aimed exclusively (or even primarily) at subprime applicants.

Specialist finance is almost always issued on the basis of an applicant’s broader individual merit. Unlike High Street banks, specialist lenders do not base their decisions entirely on credit checks and similar ‘binary’ criteria.

Myth #3 – Specialist Finance is Issued with no Credit Checks Conducted

Imperfect credit is rarely a deal-breaker, but most specialist lenders still conduct credit checks as part of the application process. All lenders want to see as much reassuring evidence as possible from prospective borrowers, in order to validate and qualify their case.

A good credit score and a flawless financial history could therefore pave the way for preferential rates of interest and lower overall borrowing costs. 

Specialist lenders do not automatically disqualify applicants with poor credit, but this does not mean that credit checks are not still conducted.

Myth #4 – Specialist Lenders Are Reluctant to Work with Self-Employed Individuals

All applications received by specialist lenders are considered on the basis of their own individual merit. This includes self-employed individuals, who are not required to present a minimum of two years of accounts – as is the case with most major lenders.

Specialist lenders simply need to see evidence that the applicant is in a suitably stable financial position and will be able to repay the loan as agreed.

Their interest is more in the client’s financial future, as opposed to their past.

Myth #5 – Specialist Lenders Only Work with Those Who Earn £25k Per Year or More

Last up, your income and outgoings will of course be taken into account by your lender. But what differs with a specialist lender is how fixed thresholds like these typically do not apply.

Your capacity to repay the BTL mortgage you are applying for will be judged on the basis of multiple factors, which go beyond your annual income alone.

All of which will be detailed and discussed in full with your chosen mortgage broker during your initial consultation.

Craig Upton
Craig Upton supports UK businesses by increasing sales growth using various marketing solutions online. Creating strategic partnerships and keen focus to detail, Craig equips websites with the right tools to rank in organic search. Craig is also the CEO of iCONQUER, a UK based SEO Firm and has been working in the digital marketing arena for many years. A trusted SEO consultant and trainer, Craig has worked with British brands such as, and Bridging Finance. Craig has also supported UK doctors, solicitors and property developers to gain more exposure online. Craig has gained a wealth of knowledge using Google and is committed to creating new opportunities and partnerships.

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