Areas I invest in
Addicted to property and once got told off in a church during a service when I was trying to work out how many flats you could get into it. A long history of providing finance to property owners and businesses with a spell running a national bridging company. I now through Searchlight Finance arrange finance for investors, developers and landlords.
Property investment interests
Most things with a roof on. Understanding why a property and location is chosen.
Property Finance including Portfolio Finance, Bridging, BTL, HMO and Commercial finance.
Experienced landlord in single lets.
Grow the portfolio through refurbishments and meet new people to chat about property
Interests outside property
A mad poodle and taxi driver to two teenagers.Enough said.
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Issues with lending due to Contractor work
I am wanting to get started with BTL’s as a portfolio landlord (already have one BTL in my personal name so not entirely a rookie) and wanted to know if there is likely to be an issue with getting mortgages through a Ltd based on my being a contractor (ie I can often go several months out of contract). I do have sets of accounts from my accountant that shows total income of just over £52k for the last couple of years and expect the same for 2021 tax year. I want to get going, but want to make sure there will be no issue with my work status, as I got burned a couple of years ago on a residential mortgage application when trying to move house, ie. my affordability at the time was good, credit check top noche, but I couldn’t tick a box of having a permanent job. Also is there any way to get ‘pre-checked or pre-approved’ as it were for a BTL mortgage through a LTD without having a specific property in mind.
I arrange BTL mortgages for many contractors who are in a similar position to you. The lender is interested in the amount on your annual tax calculation and how your bank accounts are operating.
Preapproval is possible with some brokers but all it means is that you have passed a decision in principle on that day and in my opinion is pretty worthless. You need to reduce as much as possible the amount of credit searches against you.
I've seen numerous new clients come to me where their previous broker has pre-approved them on a regular basis and when a suitable property has been found it has affected their credit file and they have missed out on their first choice of mortgage.
If your credit file is completely clean, all your payments are up-to-date and have never been missed that will be acceptable to most lenders. As you own property already that is another tick in the box.
I'd start looking for property as that is the hardest part.