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Streamline your journey to buy-to-let mortgage success with Aria Finance. We’ll provide you with a range of finance options from our panel of leading lenders, delivering the means and support you need to get the product and terms you desire.
Key product features
- Flexible landlord exposure limits
- A wide range of property types considered
- No minimum income
- Lending on both residential & commercial properties
- More lenient stress testing, application
- Generous rental calculations
- Borrowers with no credit scoring available
- Cross charging and portfolio lending available, to reduce overall costs and fees
- Top slicing and outside personal income considered to support and increase affordability
Product criteria
- LTV up to 80%
- Adverse credit considered
- No minimum income
Borrowers considered
- Individual borrowers
- Limited companies
- First-time landlords
- Property owners
- UK and offshore companies
- Ex-pats and foreign nationals
- Trusts and Charities
Properties considered
- Non-standard construction properties
- New builds
- Flats above commercial premises
- Houses in multiple occupation (HMO)
- Multi-Unit Freehold Block (MUFB)
- Local authority and housing association tenants
- Holiday Lets
- Serviced accommodation and student residences
- Multi-unit properties with one title deed
- Freehold properties split into several flats
Uses
We provide complex buy-to-let mortgages for a variety of uses including:
Houses of multiple occupation, (otherwise known as HMOs) are an excellent way for a landlord to maximise rental income from one property. These rental property types are more complex and there is more legislation involved, therefore obtaining a buy-to-let mortgage requires expert knowledge.
Unlike residential buy-to-let mortgages, a property purchased to let out for short-term stays and holiday lets requires a more complex mortgage.
Multi-unit freehold blocks (also known as MUFBs) can be extremely profitable for landlords and property professionals. Where the building has one single freehold title the yields from the individual units within can be appealing. However with this profitability comes complexity, this is where a specialist broker with experience in this property type can help navigate the mortgage market.
From application to completion
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Why choose Aria?
Streamlined finance solutions
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Read story >>Examples of non-standard properties might include:
\n\n- \n
- Serviced accommodation and student residences \n
- Houses in Multiple Occupation (HMO) \n
- Multi-unit properties with one title deed \n
- Freehold properties split into several flats \n
- Flats above shops, including fast food and takeaways \n
- Ex local authority flats \n
- \n
- Someone who has a good credit record \n
- Somebody who can afford to take the risk \n
- A home-owner who will find it easier to get a buy-to-let mortgage \n
- A property investor, specifically those interested in houses or flats \n
- Someone who has a relatively high salary \n
- A person under 70, although older applicants can be considered \n
- \n
- The amount that can be borrowed is based on the rental income achievable. \n
- Generally, the assessment of the affordability of the mortgage payment is based on the rental income the property generates versus the mortgage payment, with an added 45% to cover shortfalls. \n
- The service charges associated with the rental will also be taken into account when assessing affordability. \n
Different lenders will have their own eligibility checks. They will typically check the borrowers:
\n\n- \n
- Ability to pay the deposit and source of funds \n
- Income (2 year’s SA302) credit and assets \n
- Last 3 months’ personal and /or business bank statements as appropriate to verify rental income on remortgage cases \n
- Proof of ID (certified copy of passport or driving licence) \n
- Proof of residency (utility bill or bank statement) \n
- Lease copy (AST or commercial lease) \n
Expense should be considered in terms of how much the overall cost will be for your client. This can often be categorised in two ways;
1. Financial Benefit - Your client purchases an unmortgageable property for £100,000 at auction. With use of a bridging loan, they are able to complete renovation works of a new bathroom and kitchen, the property sells for £150,000. Once costs have been taking into account from the £50,000 return on the sale, it eliminates the perceived expensive nature of the bridging finance used. It is no longer expensive finance, but the only finance available to achieve this opportunity.
2. Emotional Benefit - A landlord client’s buy-to-let mortgage lender pulls out at the last minute, and they are already in their notice-to-complete period, having already exchanged. With the flexibility of a bridging loan, a case can complete in days – saving the landlords deposit and avoiding losing the investment property as they can still complete on the new purchase and then have a period of 24-months to arrange traditional finance on the property to replace the bridging loan.
The expense of bridging reflects the risk the lender is taking in the lending decision. They operate minimal underwriting and often secure against unmortgageable, unmarketable properties that finance could not be obtained for through traditional routes. Bridging generally carries no redemption penalties, so with some lenders, after the first month, the client is free to redeem the loan.
This all contributes to the higher interest rate the client will be charged above traditional finance.
Although this will vary between lenders, here are a range of properties that can often be financed with Buy-to-Let mortgages:
\n\n- \n
- Serviced accommodation and student residences \n
- Houses in Multiple Occupation (HMO) \n
- Freehold properties split into several flats \n
- Flats near to or above commercial premises such as shops, including fast food and takeaways \n
- Ex local authority flats \n
- Holiday let \n
- Airbnb \n
- \n
- The client gets in touch with their broker seeking options to raise funds for a Buy-to-Let property. \n
- Having conducted a fact-find process, the broker assesses whether a High Street Buy-to-Let mortgage will meet their needs or if they will need to refer the client’s case to a specialist lender, via a Specialist Finance Distributor (SFD) \n
- If the broker decides to refer their client to a SFD, they will let their client know they are being referred and expect a call from them directly. \n
- The SFD underwriter then calls the client and assesses if the client’s circumstances will be suitable for a BTL mortgage. If they are, the underwriter then prepares indicative terms which they send to the client to review. \n
- If the client confirms they are pleased to go ahead with the full process, they are sent all relevant paperwork and a list of underwriting requirements; they can then complete the required paperwork, pay any upfront fees required, gather the required documentation and send it back to the SFD. \n
- The underwriter pre-underwrites the deal, ensuring it’s complete for the lender. They then send the application to the lender to get formal approval in principle \n
- The lender issues the Agreement in Principle (AIP) to the client through the SFD and requests any further supporting documents. \n
- Once the client returns the required documents to the SFD, the underwriter will re-evaluate the case and instruct a valuation. \n
- Once the valuation is received, the SFD packages the case and submits it to the lender. \n
- The lender does a final underwrite of the loan and approves it. They then issue a formal offer, with additional documentation to sign including; the offer itself, legal charge permission and proof of buildings insurance. \n
- The client signs and returns the final documents to the SFD who forwards them over to the lender who instructs the solicitors when received. \n
- Once all legalities have been finalised the funds are released to the borrower \n
These fees will vary across the market:
\n\n- \n
- Broker fee – This varies between brokers. Some brokers do not charge a fee and rely on receiving commission from lenders when the loan completes. Other brokers may charge a fixed fee or a percentage of the total loan value. \n
- Application fee – Some lenders and brokers charge for submitting an application \n
- Valuation fee – To calculate an unbiased, accurate value of the security, lenders will typically instruct an independent valuation. This can also include a projected valuation of the project once completed. \n
- Arrangement fee – Often calculated as a percentage of the total cost of the loan \n
- Legal fees – If needed, borrowers will have to pay for legal costs such as hiring a solicitor or qualified legal advice \n
- Exit fee – Often calculated as a percentage of the total cost of the loan. There are some commercial mortgages that do not have exit charges. \n
- Administration fees - Any additional costs charged by either lender or broker \n
Buy-to-let
Frequently asked questions
What is a Buy-to-Let mortgage?
Which types of property might need a Buy-to-Let mortgage?
Examples of non-standard properties might include:
- Serviced accommodation and student residences
- Houses in Multiple Occupation (HMO)
- Multi-unit properties with one title deed
- Freehold properties split into several flats
- Flats above shops, including fast food and takeaways
- Ex local authority flats
Examples of non-standard properties might include:
- Serviced accommodation and student residences
- Houses in Multiple Occupation (HMO)
- Multi-unit properties with one title deed
- Freehold properties...
Who might want to use a Buy-to-Let mortgage?
- Someone who has a good credit record
- Somebody who can afford to take the risk
- A home-owner who will find it easier to get a buy-to-let mortgage
- A property investor, specifically those interested in houses or flats
- Someone who has a relatively high salary
- A person under 70, although older applicants can be considered
- Someone who has a good credit record
- Somebody who can afford to take the risk
- A home-owner who will find it easier to get a buy-to-let mortgage
- A property investor, specifically those interested in...
Who can apply for a Buy-to-Let mortgage?
Buy-to-Let mortgages: how much can be borrowed?
- The amount that can be borrowed is based on the rental income achievable.
- Generally, the assessment of the affordability of the mortgage payment is based on the rental income the property generates versus the mortgage payment, with an added 45% to cover shortfalls.
- The service charges associated with the rental will also be taken into account when assessing affordability.
- The amount that can be borrowed is based on the rental income achievable.
- Generally, the assessment of the affordability of the mortgage payment is based on the rental income the property generates...
When will my client find out if their application has been successful?
What eligibility checks will there be for Buy-to-Let mortgages?
Different lenders will have their own eligibility checks. They will typically check the borrowers:
- Ability to pay the deposit and source of funds
- Income (2 year’s SA302) credit and assets
- Last 3 months’ personal and /or business bank statements as appropriate to verify rental income on remortgage cases
- Proof of ID (certified copy of passport or driving licence)
- Proof of residency (utility bill or bank statement)
- Lease copy (AST or commercial lease)
Different lenders will have their own eligibility checks. They will typically check the borrowers:
- Ability to pay the deposit and source of funds
- Income (2 year’s SA302) credit and assets
- Last 3...
Why are bridging loans considered to be expensive?
Expense should be considered in terms of how much the overall cost will be for your client. This can often be categorised in two ways;
1. Financial Benefit - Your client purchases an unmortgageable property for £100,000 at auction. With use of a bridging loan, they are able to complete renovation works of a new bathroom and kitchen, the property sells for £150,000. Once costs have been taking into account from the £50,000 return on the sale, it eliminates the perceived expensive nature of the bridging finance used. It is no longer expensive finance, but the only finance available to achieve this opportunity.
2. Emotional Benefit - A landlord client’s buy-to-let mortgage lender pulls out at the last minute, and they are already in their notice-to-complete period, having already exchanged. With the flexibility of a bridging loan, a case can complete in days – saving the landlords deposit and avoiding losing the investment property as they can still complete on the new purchase and then have a period of 24-months to arrange traditional finance on the property to replace the bridging loan.
The expense of bridging reflects the risk the lender is taking in the lending decision. They operate minimal underwriting and often secure against unmortgageable, unmarketable properties that finance could not be obtained for through traditional routes. Bridging generally carries no redemption penalties, so with some lenders, after the first month, the client is free to redeem the loan.
This all contributes to the higher interest rate the client will be charged above traditional finance.
Expense should be considered in terms of how much the overall cost will be for your client. This can often be categorised in two ways;1. Financial Benefit -Your client purchases an unmortgageable...
What sort of properties can be purchase or re-finance with Buy-to-Let mortgages?
Although this will vary between lenders, here are a range of properties that can often be financed with Buy-to-Let mortgages:
- Serviced accommodation and student residences
- Houses in Multiple Occupation (HMO)
- Freehold properties split into several flats
- Flats near to or above commercial premises such as shops, including fast food and takeaways
- Ex local authority flats
- Holiday let
- Airbnb
Although this will vary between lenders, here are a range of properties that can often be financed with Buy-to-Let mortgages:
- Serviced accommodation and student residences
- Houses in Multiple...
How long can Buy-to-Let mortgages be borrowed for?
How much of a deposit is needed for a Buy-to-Let mortgage?
How long do applications take to complete for Buy-to-Let mortgages?
How does the application process work for Buy-to-Let mortgages?
- The client gets in touch with their broker seeking options to raise funds for a Buy-to-Let property.
- Having conducted a fact-find process, the broker assesses whether a High Street Buy-to-Let mortgage will meet their needs or if they will need to refer the client’s case to a specialist lender, via a Specialist Finance Distributor (SFD)
- If the broker decides to refer their client to a SFD, they will let their client know they are being referred and expect a call from them directly.
- The SFD underwriter then calls the client and assesses if the client’s circumstances will be suitable for a BTL mortgage. If they are, the underwriter then prepares indicative terms which they send to the client to review.
- If the client confirms they are pleased to go ahead with the full process, they are sent all relevant paperwork and a list of underwriting requirements; they can then complete the required paperwork, pay any upfront fees required, gather the required documentation and send it back to the SFD.
- The underwriter pre-underwrites the deal, ensuring it’s complete for the lender. They then send the application to the lender to get formal approval in principle
- The lender issues the Agreement in Principle (AIP) to the client through the SFD and requests any further supporting documents.
- Once the client returns the required documents to the SFD, the underwriter will re-evaluate the case and instruct a valuation.
- Once the valuation is received, the SFD packages the case and submits it to the lender.
- The lender does a final underwrite of the loan and approves it. They then issue a formal offer, with additional documentation to sign including; the offer itself, legal charge permission and proof of buildings insurance.
- The client signs and returns the final documents to the SFD who forwards them over to the lender who instructs the solicitors when received.
- Once all legalities have been finalised the funds are released to the borrower
- The client gets in touch with their broker seeking options to raise funds for a Buy-to-Let property.
- Having conducted a fact-find process, the broker assesses whether a High Street Buy-to-Let...
What fees and charges can I expect with Buy-to-Let mortgages?
These fees will vary across the market:
- Broker fee – This varies between brokers. Some brokers do not charge a fee and rely on receiving commission from lenders when the loan completes. Other brokers may charge a fixed fee or a percentage of the total loan value.
- Application fee – Some lenders and brokers charge for submitting an application
- Valuation fee – To calculate an unbiased, accurate value of the security, lenders will typically instruct an independent valuation. This can also include a projected valuation of the project once completed.
- Arrangement fee – Often calculated as a percentage of the total cost of the loan
- Legal fees – If needed, borrowers will have to pay for legal costs such as hiring a solicitor or qualified legal advice
- Exit fee – Often calculated as a percentage of the total cost of the loan. There are some commercial mortgages that do not have exit charges.
- Administration fees - Any additional costs charged by either lender or broker
These fees will vary across the market:
- Broker fee – This varies between brokers. Some brokers do not charge a fee and rely on receiving commission from lenders when the loan completes. Other...
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