Buy-to-Let Mortgage Applications Processing Times Reach Six Months

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New data suggests that BTL investment purchases are being derailed with mortgage applications now taking as long as six months to process.

In the countdown to the original stamp duty holiday deadline of March 31, the housing market was inundated with time-critical Buy to Let mortgage applications from movers and first-time buyers. Many were investors suddenly finding huge delays due to an unprecedented backlog.

The chancellor has subsequently confirmed that the stamp duty holiday will be extended until at least September 30th.  Unfortunately, however, the backlog remains and is expected to be compounded by a further spike in activity over the coming weeks and months as buyers attempt to purchase prior to the expiry on the new deadline.

As a result, landlords seeking conventional buy-to-let mortgages from major lenders are facing the prospect of the application process taking up to six months. Given the urgency that often accompanies Buy to Let mortgages for property purchases, this has spurred many to consider alternative secured loan options from specialist lenders away from the High Street.

Getting the Deal Done Sooner

Regional disparities can exist regarding the length of time it takes for transactions to be processed in different corners of the country, nevertheless, processing times and subsequent waiting times are up for BTL mortgage applications across the UK in general.

Interestingly, there are several interesting statistics that show certain purchases happen quicker than others. For example, transactions involving semidetached houses are typically completed 11% faster than those involving flats, while transactions processed online are completed on average 20 working days quicker than those processed by phone.

As an alternative to long and drawn-out BTL mortgage applications, the popularity of specialist secured loans is growing nationwide. Bridging finance is proving a popular option for investors in time-critical situations, and ideal for established landlords with equity in their existing properties.

Even in the current scenario, bridging loans for BTL property purchases can be arranged in just a few working days and almost always within two weeks. This can offer a lifeline to landlords looking to purchase properties at auction and in other instances where payment is required within a short space of time. Using  a bridging loan calculator can help identify the exact repayment needed.

Independent Broker Support

If waiting six months for a mortgage application to be processed is not a viable option, the support of an independent broker could prove invaluable. It is important to remember that many specialist lenders offer their services exclusively via established brokers, not directly to the borrower.

There are various secured lending options available away from the High Street, which in many instances are quicker to arrange and significantly more cost-effective. All of which should be considered carefully, before submitting an application for a conventional BTL mortgage.

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