How to Hub
‘Do you do…?’ Here’s how we treat these common difficult case enquiries
There are many common questions that IBDMs and RAMs are often asked by brokers. Gemma Lang, Regional Area Manager highlights a few here to help anyone with these queries…
Q: My customer wants to remortgage one of their BTLs. They have no other BTLs in the background. Is this OK?
A: Have they lived in the property since March 2016? If so, it’s a CBTL (Consumer BTL) so we cannot lend on it.
Q: My customer has an HMO which has a self-contained unit within the property, is that OK?
A: How many bedrooms does the property have including the bedrooms in the self-contained unit? If less than 10 in total, this would be classed as a MUB (Multi-Unit Block).
Q: My customer owns a block of flats all held under the same freehold title. Is that OK?
A: If there are up to 10 self-contained flats all under the same freehold with no individual leases set up, this is acceptable as it is classed as a MUB (Multi-Unit Block).
Q: My customer wants to use latest years figures because the year before was lower, is that possible?
We will require the broker to email the accountants certificate to their qualified accountant. The accountant will need to provide the last 2 years figures and a projection and reason for the dip in profits.
Q: My customer is a British Ex-Pat living in Dubai, is that OK?
A: No people living in United Arab Emirates (UAE) areas are not acceptable to Foundation Home Loans.
Q: The property is owned by a Trust, is that OK?
A: It may be, depending on the details. Please email your query and the full Trust document to your RAM.
Q: The income is from a Trust, is that acceptable?
A:It may be, depending on the details. Please email your query and the full Trust document to your RAM.
Q: My landlord client owns/wants to buy a HMO which has en-suites in the bedrooms, is that OK?
A: Yes, subject to valuers’ comments.
Q: The property in an HMO which has kitchenettes in the bedrooms, is that OK?
A: Potentially, subject to valuer’s comments and the kitchenettes being safe. It’s always best to refer full details on what actually is in the kitchenettes (such as microwaves, hobs, overs etc) to the RAM for them to speak to Underwriting.
Q: My customer wants to buy/remortgage a house/HMO/MUB that is next door/near to commercial, is that OK?
A: Yes, subject to valuer’s comments. You are welcome to email the RAM the GoogleMap link and full address so we can have a look at it with underwriting pre-DIP.
Q: My customer wants to buy/remortgage a flat that is above commercial, is that OK?
A: Please email the RAM the GoogleMap link and full address so we can have a look at it with Underwriting pre-DIP. Please include the LTV you require and tell us what floor the security address is on also.
Q: Do you think this property is in a lettable condition?
A: Does it have secure doors, windows, flooring, heating, water supply? It would be subject to valuer’s comments, but always ask the broker “Would you live in it?” If the answer is no, it’s probably not in a lettable condition.
Q: My customer wants to buy a property which is currently a single dwelling and turn it into an HMO after completion of our mortgage, is that OK?
A: No, it has to be tenanted as an HMO before you can submit the application, so would need to buy it on bridging finance for example then remortgage it to us once the property is an HMO.
Q: My customer is a First Time Landlord looking to buy an HMO/MUB/STL, is that OK?
A: We can do an exception in some cases for FTLs to have an HMO/STL/MUB. The process is as follows:
- Broker DIP the case- The DIP declines.
- Broker add notes to the DIP to say how long they have held their resi mortgage for, what their income is, and how much they have in savings and how they intend to manage the property (i.e. letting agency etc.)
- Broker emails the RAM the DIP reference number once the notes are added and they will submit an appeal for you. Usually takes up to 48 hours for a decision to come through.
Q: My customer is a First time Landlord and Ex Pat, is that OK?
A: No, British Ex-Pats cannot be First Time Landlords, they must have owned a BTL in the UK for at least 1 year and have 1 years SA302 to show rental in declared to HMRC.
If you have any complex cases, we would love to help. Your Foundation Home Loans Regional Area Manager direct dial number is here.
FOR INTERMEDIARIES ONLY
