I find investors who are used to doing buy to let mortgages keel over and die when they see the document requirements for the commercial lenders.
Indeed the ‘I’ll go commercial’ phrase oft touted believing it to be the easy route is a complete myth!
As such I thought it would be useful to post a list of the documents the commercial lenders typically request so you can be prepared and move things along quicker. Added to which it is invariably obtaining client documents that leads to delays rather than the lenders!
Not all lenders request all these but as you don’t know which lender you’ll be using its prudent to gather all of these together before you start the process.
– Evidence of residential and investment mortgage payments usually for 12 months (mortgage statements and/or bank statements)
– Evidence of rental income for EVERY property usually for 12 months
– Tenancy agreements and leases
– 6-12 months’ personal bank statements
– 6-12 months’ business bank statements
– Last 3-6 months’ pay slips and last P60
– Two years of SA302s (remember lenders want 2014 now)
– Two years accounts for ALL companies you’re a director of (even if not related to your property business)
– Insurance to match or exceed the valuers reinstatement value
– Planning permissions, building controls, Article 4 evidence
– HMO licence
– Schedule of works if the property has been refurbished or will be
– Evidence of deposit (even if a remortgage)
– Evidence of funds for works (even if a remortgage)
– Evidence of third party payments for deposits, works, JVs, etc.
– Gift letters, ID, proofs of address, bank statements, etc. for gifts or third party contributors
This is in addition to signed application forms, direct debit mandates as well as ID, proofs of address etc. we are obliged to obtain and anything else that sparks the lenders interest.
If you’re thinking of ‘going commercial’ start gathering your documents together well in advance!