Most delays in buy-to-let processing come down to missing information that could have been closed before submission. A well-packaged case does not guarantee a faster decision, but an under-packaged one almost always leads to a slower one.
Underwriters are trying to build a picture of the borrower and the property, including its rental potential. After all, most standard cases are decided on that rental assessment. Where a case falls short on rental cover, often after a down valuation on the rental income, Molo can look at full affordability instead. The broker typically needs to request the review, and having the borrower’s income and expenditure, bank statements and proof of income ready beforehand will help the case move faster.
Molo also weeds out most adverse credit early in the process through automated decisions on personal credit searches. The broker adds most value on what automation may miss, such as an applicant’s background or historic limited company liquidations that often go undisclosed and only show up under manual underwriting. These can be explained in the notes added to the case. However, raising them with the BDM before submission saves trouble further down the line. Where a self-employed case needs full affordability, Molo works from accounts prepared by a suitably qualified accountant. Having the latest figures to hand saves them being chased later.
On the property side, HMOs and multi-unit freehold blocks need more preparation. Molo can accept an HMO where the licence is not yet in place at completion, provided the application has already reached the local authority. It is worth confirming where the licence stands early in the process. Other factors you should check include whether the property is sub-let or corporate let, and that there are no vulnerable tenants, which come up more often with these cases and are not always disclosed upfront. Larger HMOs and MUFBs of more than seven rooms or units go to the VAS panel, where valuation fees can be higher than a client expects. A conversation to manage expectations is worth having before submission.
A current assets and liabilities statement covering the full background portfolio is worth preparing for portfolio landlord cases, even though Molo does not always require one. A portfolio assessment applies once a client has four or more mortgaged buy-to-lets in the background. There is no limit on the number of background properties, with lending up to an aggregate of £5m. Preparing the statement signals that the broker has done the work, which sets a positive tone for the rest of the case.
If you have a case you would like to talk through, your Molo BDM can help you package it before it reaches underwriting.
