From Adviser Guide: Buy-to-let part 1
Q: What information will the lender require?
In general terms lenders will require very similar information to that required for a residential mortgage.
Responsible lenders must assess whether the borrower will be able to repay the sums advanced and be able to demonstrate the mortgage is affordable.
Lending criteria and application details will differ from lender to lender, so it is worth checking a lender’s website for specific details before submitting an application.
In general terms, however, lenders will require very similar information to that required for a residential mortgage.
The key difference, according to Charles Haresnape, managing director of Aldermore Residential Mortgages, is that lenders are interested in the amount of rent a property will generate to ensure there is enough income to cover the mortgage payments.
There will also be other specific requirements.
For example, Mr Haresnape said lenders will usually want a minimum of a one-year assured shorthold tenancy agreement to be in place and may stipulate a maximum number of buy-to-let properties that can be mortgaged.
Mr Haresnape said: “If you are in any doubt, it is always worth speaking to the lender beforehand.”