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6. Buy-to-Let mortgages

What type of borrowers do you lend to?Do you lend to expats?Do you lend to foreign nationals?What are your residential requirements?What is your maximum number of applicants?What is the maximum loan amount?Can I make overpayments?Is there a repayment mortgage option?What is the minimum income?How do you calculate portfolio exposure?How do you calculate the interest coverage ratio (ICR) / debt service coverage ratio (DSCR)?Do you apply title insurance to your Buy-to-Let mortgages?Is there a minimum valuation?How do I submit an application to you?Can I come to you directly?How do I upload an item which is not requested as a task?How do I get a copy of the offer letter?Can I get a copy of the valuation report?Why do you need a direct debit mandate (DDM) when the borrower has e-signed?How do I know when my case has been submitted?Can the client manually sign the application and send back a scanned copy?Can I use a different valuer?What does my case status mean?An error message has popped up – who do I speak to?How do I get an update on the progress of my case?How do I duplicate a case for multiple properties?What is your procuration fee?Are there any exit fees after my fixed rate ends?Will LendInvest collect my broker fee?Can I add the product fee to the loan?Do you lend on new build properties?Do you lend on flats above commercial properties?Do you lend in Scotland?Where can I find your full criteria?How do you verify the borrower’s identity?What is Onfido?How do you verify the borrower’s address?What happens if the identity and address verification checks fail?May 2020 update to procuration fee paymentsHow can I check if you have my correct bank details to receive my procuration fee?How do I update my procuration fee bank details?When will you pay my procuration fee?What if my submitted application is via a Mortgage Club?If I am a new broker how do I give you my details?What happens if my deal completes and I have not provided details?What if my loan completes and I have not received my procuration fee, or it is the incorrect amount?

What type of borrowers do you lend to?

We lend to individuals, limited companies, limited liability partnerships (LLPs) and new special purpose vehicles (SPVs). The company SIC code must relate to property management, investment or development. Our borrowers are typically professional portfolio landlords.

Do you lend to expats?

No.

Do you lend to foreign nationals?

Yes, so long as they fulfil the residential requirements as outlined in the question below.

  • We lend to UK, EU and EEA nationals under tier 1 criteria.
  • Non-UK, EU and EEA nationals are considered under tier 2 criteria, subject to underwriter approval.

What are your residential requirements?

For tier 1 rates, the applicant(s) must be a UK resident and have been resident in the UK for the past 3 years.

For tier 2 rates, the applicant(s) must have a three-year UK residential history and a permanent right to reside in the UK.

What is your maximum number of applicants?

For individual applications, we accept up to two applicants.

For corporate applications, we accept up to four directors/shareholders/members.

What is the maximum loan amount?

We lend up to a maximum of £2 million for standard properties and small HMOs, £3 million for large HMOs and MUFBs. The most we will lend to one borrower is £5 million. Please see our Buy-to-Let mortgages page for more information.

Can I make overpayments?

Yes, you can repay up to 10% of the outstanding loan balance in any 12-month period (calculated by taking the balance at completion and each anniversary thereafter) without incurring an early repayment charge.

Is there a repayment mortgage option?

No.

What is the minimum income?

For first-time landlords, defined as landlords who have less than 12-months experience, they are required to demonstrate income of £30,000. More experienced landlords are required to demonstrate sufficient income.

How do you calculate portfolio exposure?

The rental income from the portfolio must equate to 125% of the outstanding debt on a portfolio at 5.50%

If the portfolio falls below this threshold, however, our underwriters will take a flexible approach, having discretion to accept a lower rental coverage with reference to the liquidity of the portfolio and, if applicable, other assets belonging to the applicant(s). Please see our Buy-to-Let lending criteria for more information.

How do you calculate the interest coverage ratio (ICR) / debt service coverage ratio (DSCR)?

The rent being generated from an investment property must equal the required ICR/DSCR percentage at the rate relevant to that product, as set out in the table below. For example, 125% at 5.00% means that the rental income must be 125% of the mortgage payments assuming an interest rate of 5.00%.

Interest coverage ratios and assessment rates
Applicant Single properties HMO and MUFB
Basic rate taxpayer (20%) 125% 130%
Limited company or LLP 125% 130%
Higher rate taxpayer (40%) 140% 145%
Additional rate taxpayer (45%) 140% 145%

Do you apply title insurance to your Buy-to-Let mortgages?

Yes, we apply free title insurance to Buy-to-Let remortgages on standard properties and HMOs (not MUFBs) with a loan amount of £750,000 or less. This is insurance obtained against unknown but existing title defects, avoiding the need for standard conveyancing and other property related searches.

Is there a minimum valuation?

Yes. The minimum valuation is £150,000 in London, and £75,000 for the rest of the UK.

How do I submit an application to you?

All applications for our Buy-to-Let mortgages are made online via our broker portal. You will first need to register on the portal. Once you have requested access and we have confirmed your registration, you can log in to your account and start submitting cases.

Can I come to you directly?

No. We offer our Buy-to-Let mortgages solely through our intermediary partners, but we do offer bridging and development loans direct to borrowers.

How do I upload an item which is not requested as a task?

In the application screen of the online portal, go to the actions section and click ‘upload supporting documentation’. From there, you can click ‘upload document’ and choose from the dropdown list what type of document you wish to upload.

How do I get a copy of the offer letter?

Once the offer has been sent to the borrower, you can click on the offer link on the application screen of the portal to download a copy.

Can I get a copy of the valuation report?

Yes. Please get in touch with your designated case manager.

Why do you need a direct debit mandate (DDM) when the borrower has e-signed?

Until we sign up to the Direct Debit Guarantee scheme a paper copy is required.

How do I know when my case has been submitted?

When you have submitted your application, the case status will show as ‘reviewing’ alongside the borrower’s name. This will turn green and show as ‘signed’, along with the date it was signed, once your client has e-signed the application.

Can the client manually sign the application and send back a scanned copy?

No.

Can I use a different valuer?

No. The valuation will be commissioned by LendInvest from a valuer on our panel.

What does my case status mean?

DIP – A decision in principle in in progress on the online portal.

DIP issued – The decision in principle has been issued and presented to the borrower.

New – An application form is in progress on the online portal.

Submitted – The application form has been submitted to the borrower to confirm and sign.

Application form signed – The application form has been signed by the borrower and the case has been assigned to a case manager and underwriter. The broker will now receive a task to pay the valuation fee.

Fee paid – The broker has paid the valuation fee.

Packing – The assigned case manager is carrying out initial due diligence checks on the borrower, property and portfolio.

Reviewing – The assigned underwriter is assessing the case.

Valuation – The valuation has been instructed.

Underwriting valuation – We have received the valuation report and the case is being underwritten.

Preparing offer – The assigned underwriter is ready to proceed to a formal offer.

Offer – The offer has been issued to the borrower to e-sign via DocuSign.

Offer signed – The borrower has signed the offer.

Legals instructed – We have sent formal instructions to our solicitors.

ROT received – Solicitors will send the report on title and request funds for completion.

ROT reviewed – The assigned underwriter will review the report on title to ensure conditions are met as per the mortgage offer.

Funds released – The case has been signed off for completion and the funds have been sent to the designated solicitor for completion.

Completed – Solicitors will confirm completion and the status will be updated.

An error message has popped up – who do I speak to?

Please get in touch with the relevant team:

How do I get an update on the progress of my case?

Our case managers will provide updates throughout the process. Alternatively, email or call your allocated case manager.

How do I duplicate a case for multiple properties?

Currently, our online portal doesn’t allow for an application to be duplicated, but we are looking to develop this functionality soon.

What is your procuration fee?

Our procuration fee is 0.60% of the advance.

Are there any exit fees after my fixed rate ends?

There are no early redemption charges once the fixed period ends.

Will LendInvest collect my broker fee?

Currently, we cannot collect any additional fees, but we hope to allow for this in future.

Can I add the product fee to the loan?

Yes, up to 85% LTV.

Do you lend on new build properties?

Yes. You can find the full list of acceptable and unacceptable properties in our Buy-to-Let lending criteria.

Do you lend on flats above commercial properties?

Yes, but this is subject to certain restrictions:

  • We do not lend on flats above public houses or food premises.
  • If evidence exists that the vacant commercial unit may trade as a public house or food premises, the case will ordinarily be declined.
  • MUFBs that include or are above/adjacent to a commercial property are ordinarily declined.

Do you lend in Scotland?

Yes. We lend on standard properties and small HMOs (up to 6 rooms) in Scotland, England and Wales. Buy-to-Let for MUFB and Large HMOs (7 rooms plus) are only available in England and Wales.

Where can I find your full criteria?

Please download our Buy-to-Let lending criteria for full details.

How do you verify the borrower’s identity?

Once we have received the signed application from the applicant(s), we will send them a link to the Onfido platform to carry out their identification check.

    1. First, the applicant will be asked their name, address and date of birth.
    2. Next, they will be asked to take and upload a photo of their identification (eg passport or photocard driving licence).
    3. The applicant will then be prompted to take and upload a selfie.
    4. Using machine intelligence, Onfido will match the selfie with the uploaded identification and send the results to your allocated case manager here at LendInvest.

The whole process takes 60 seconds, and can be completed on a smartphone, tablet or laptop.

What is Onfido?

Onfido is the UK’s leading identity verification company. We’ve partnered with them so we can more quickly confirm the borrower’s identity. The new process takes just 60 seconds and removes the need for certified physical copies of documents, making our Buy-to-Let mortgage application process even easier.

How do you verify the borrower’s address?

Your allocated case manager will carry out an electronic address verification check through Equifax, removing the need for a certified copy of the borrower’s proof of address.

What happens if the identity and address verification checks fail?

If the checks fail, you will need to send us a certified copy of the borrower’s identification and/or a certified copy of their proof of address. Please see our identity documents guide for more details.

May 2020 update to procuration fee payments

As of May 2020 we are paying procuration fees automatically and you will no longer need to submit an invoice for each deal submitted. 

How can I check if you have my correct bank details to receive my procuration fee?

Please contact [email protected] and a team member will assist you.

How do I update my procuration fee bank details?

Please email [email protected] to let the team know you have new bank details. We will need a welcome letter or bank statement that includes the name of the account, account number and sort code. You will then be called by a team member to confirm your details.

When will you pay my procuration fee?

They are automatically paid on Wednesday. 

What if my submitted application is via a Mortgage Club?

We will pay the club directly. 

If I am a new broker how do I give you my details?

Once your case is offered we will email you requesting a copy of your bank welcome letter or bank statement which includes the name of the account, account number and sort code.

Once received we will call you to confirm the details are correct and input them into our system to be stored securely for all future applications.

What happens if my deal completes and I have not provided details?

You can send us an invoice as a one off and we will use the bank and sort code provided for future payments. 

What if my loan completes and I have not received my procuration fee, or it is the incorrect amount?

Please contact your case manager or [email protected] and we will investigate. 

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