How do you get more bank loans for Mortgagein Britain?

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Buy a house, the loan is the key. It is one of the important means to increase passive income to use leverage and leverage bank loans to maximize investment benefit. However, bank loans are not that easy to borrow. Today we’re going to talk about this:
If you decide to apply for a mortgage on real estate investments, the bank will evaluate what information you have to decide whether to borrow it or not and how much? Knowing where the threshold is, the practice will be more effective.
The most critical factor in the success of a loan application: repayment ability
In fact, for the assessment, the bank is afraid you cant pay the bill. So proving that you have sufficient repayment ability under various risk conditions is the key to successful application.
There are two main points to be used for Residential loans: The maximum loan amount is 5 times of your family’s annual income, family income is mainly measured by fixed income, with additional income such as investment income, overtime, commission, bonus and part-time. The maximum loan is no more than 80% of the value of your property.If the Broker is strong enough, some loan products are allowed to reach 90%.
Of these two standards, banks will take the lower one. In addition, the bank will measure your spending and risk-resistance:
Expenses: Credit card repayments, other loans such as car loans, alimony, various bills, insurance, and daily expenses. The bank is generally required to provide the current bank statement.
Anti-risk ability: The main consideration will be personal or external changes in the impact of repayment, such as interest rates, occupational stability, unemployment risk, unable to work due to illness and so on.
For Buy to Let, borrow or not, depends on:
The investment property itself can produce monthly rent situation. Stress tests conducted by banks now generally assume a loan interest rate of 5%, requiring monthly rental income to be more than 25% of the monthly payment.
This year, the Bank of England took steps to force banks to adopt tougher standards when they issue home loans, preventing real estate market turmoil in today’s relatively lenient terms of borrowing. Future austerity trends could push stress testing rates up to 5.5%, banks’ monthly rental income 45% above repayments, and down payment requirements from the current 25%.
Specific on how to borrow
How to borrow? Banks will also decide on the borrower’s mortgage options which can be opened. The more options, the greater the investor’s initiative.
1.Minimum income: at least $25, 000 in annual household income excluding real estate income.This is to ensure that you have enough other income to pay the monthly mortgage when the property you are investing is left vacant. The requirements for minimum income may vary slightly from bank to bank, and the $25,000 is a relatively common requirement, and the £ 25,000 being the more common requirement. For contractors and freelancers who can’t afford a payroll, the bank may ask for the bank’s current account information for the last two years as proof.
2.Bonus points if you already own your own home. Because the conditions for the issuance of investment-type mortgages than buy-house type is more relaxed, the individual’s annual income requirements are relatively low, so banks are worried that buyers will buy their own loopholes to apply for a rental-type loans, but in fact they do for their own purposes. If you already own the property, then the risk in this area can be largely eliminated.
3.Type of Property Investment: There are two types of properties that are not favored by banks or credit agencies: One is the apartment above the shop, because it is difficult to control what shops whey will open, will it have a negative impact on your rental, another one is a high-rise apartment above five floors, because in the UK, high-rise apartments are less popular in the local rental market.
How to maximize mortgage to a maximum amount?
If your annual income is not big, spend a lot on usual expenses, and no experience of real estate investment or loan application. These all doesn’t matter, the most important thing is that you have a yearning heart. Actually, the loan application just like the job interview, self-packaging is very important!
1.Self-Packaging
If you have a clear understanding of the bank’s loan policy and loan terms, or you can go directly to banks for consultation one by one, the difference between the bank’s loan products and interest rate is great, and it is very necessary to shop around. The following four preparations will help you meet your bank loan “interview”:
Apply for a loan to minimize your fixed expenses, make a strict spending budget and implement it. In the case of constant income, the decrease in spending can effectively increase your mortgage limit.
The necessity of checking current Direct Debit. Try to eliminate contributions that are no longer in use or are rarely used.
Pay off your credit card debts or other loans before applying.
Simulate pressure test. You can try your stress test using the Mortgage calculator, have a comprehensive understanding of your repayment ability.
The benefits of self-packaging: No extra overhead.
2.Find a Mortgage Broker for packing
Integrated the above information is not hard to find, when lending Banks and credit agencies measure of many factors, want to find a most suitable mortgage products is more than just choose the lowest rates so simple, therefore, to find a good real estate agent to help you find the most suitable products can be said to be small investment returns. How do you determine if your Mortgage Broker is reliable?
They have the resources of an entire market, not just to a particular bank or credit institution. Only in this way can they find out the most cost-effective mortgage products on the market and not recommend them in a limited range of choices, they have a business specialization for the loans clients need. Because different types of loans are measured and issued by very different standards, only the Broker in the field of expertise can provide the most in-depth advice and help, they are not simply “processors” but are willing to spend time and energy looking for and comparing multiple products and analyzing the pros and cons. There are some large companies Broker is more inclined to help you find a suitable solution in existing products rather than spend energy to help you find one by one in the market comparison. This is largely governed by company processes and is required to complete the transaction as soon as possible. Good Broker is willing to work hard to help you find the best product.
They have a wide range of contacts and relationships to help you solve problems that you can not directly solve and get internal information that individuals can not find on the market. This is one of the main reasons why we commission brokers for mortgage applications, and it is best that they themselves make their own property investments. Because only through the various stages of their own experience, they asked the problem can be more direct attention to your needs, and help you to discharge the most reasonable priorities.
The fees charged by each mortgage broker may vary, but a reliable mortgage broker can help you get the best rates, save thousands of pounds on your mortgage, and vary depending on your specific situation , In the shortest possible time in various banks and different products in the more specialized screening and analysis, so you save time and effort, but also reduce your loan rejection probability, the loan broker is required by the bank on the application of the lender Pre-assessment, assessment By applying for and submitting the materials in accordance with the requirements of the bank, otherwise, a new loan application proposal will be made. Therefore, we can effectively avoid the case of rejected loans, greatly improving the success rate of loans.

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