The
Property Investor's
Broker
- Let’s make your financial dreams a reality with smart, simple, and speedy solutions!
FINANCE SOLUTIONS
At Grand Union Finance, we’re committed to a fresh approach! Our mission is to offer tailored advice that meets your unique needs, regardless of your experience level—all delivered with a friendly smile. We prioritise building lasting relationships, because your success is our success. Together, let’s pave the way to achieving your financial goals!
- Whether you're buying your first home
- Venturing into property development
- Expanding your investment portfolio
- Experienced broker by your side
Find out how we can help you today?
Find out how we can help you today?
COMMON QUERIES
We are always on hand to answer any questions you might have, but here are some of the questions we get asked the most, so you might find the answer you are looking for here:
- Yes, first-time buyers can secure a buy-to-let mortgage, but lenders often have stricter criteria. You'll typically need to demonstrate a solid financial background, a good credit score, and you may need to demonstrate you could afford to make the monthly repayments, similarly to how this is calculated on a residential mortgage.
- The time it takes to receive a mortgage offer can vary, but on average, it typically ranges from 4 to 8 weeks. Factors influencing this timeline include the complexity of your application, the efficiency of the lender, and how quickly you provide necessary documentation. Ensuring you are transparent with your circumstances (don’t be embarrassed… we’ve seen it all!), and are organised with documents and information sharing, will definitely help. Our aim is to hit 3-4 weeks, but we have received offers in days in the past.
- Usually, the answer would be yes… but at Grand Union Finance, we aim to make the application process as painless as possible for you… which includes reducing the paperwork to zero in many cases! We are a paperless company (we like to save the trees!) and this also means our helpful team are on hand to run through all paperwork for you, over a simple phone call. We also have a handy portal to make uploading documents to us simple and secure.
- For a buy-to-let mortgage, most lenders typically require a deposit of at least 25% of the property's value. However, this can vary depending on the lender, your financial situation, and the property type. There are lenders who can offer buy-to-let mortgages with only a 20% deposit, but expect to pay a higher rate and in some instances, a higher lender fee too.
- Unlike a residential mortgage, where how much you can borrow is based on your personal ability to make the monthly payments, buy-to-let mortgages are based on the income that the property itself, generates… namely, the rent! However, many lenders will still need to see evidence that you, yourself (even if buying through a limited company) have some form of income, called a “minimum income requirement”, which could vary from £15,000 to £25,000 depending on the lender. Other lenders do not have a minimum, but still have a requirement to show some sort of income, and a very small number do not have this requirement. These more flexible lenders generally will want to see that you are an experienced landlord in order to lend to you.
- Bridging finance is a short-term loan designed to "bridge" the gap when immediate funding is needed, often used for property purchases before securing a traditional mortgage. An example of when you might use a bridge is when you are buying a property that is unmortgagable, is in need of a refurbishment, or maybe at auction. In contrast, a mortgage is a long-term loan specifically for purchasing property, typically with lower interest rates and longer repayment terms.
- Development finance refers to funding specifically aimed at property development projects, such as constructing new buildings or renovating existing ones. This type of financing can cover costs like land acquisition, construction, and related expenses, and is usually offered on a short to medium-term basis. Typically lenders will offer a loan of up to 70% of the gross development value (GDV), with 100% of the cost of works covered, and up to 75% of the purchase price made available as a day one loan towards the purchase.
- 100% development finance typically refers to lenders who can offer to cover 100% of the cost of works by way of a development drawdown facility. This does not include covering 100% of all costs, as most lenders will require a deposit, and usually, the borrower will be required to front the cost of the works, typically covering whatever the first stage payment would be, before being reimbursed by the development drawdown facility.
- A commercial mortgage is a loan specifically designed for purchasing or refinancing commercial properties, such as offices, retail spaces, or warehouses. Unlike residential mortgages, commercial mortgages typically have different criteria, terms, and repayment structures, reflecting the unique risks associated with commercial real estate. There are two types of commercial mortgage – owner-occupied and investment, the former being where the borrower owns the company that will be occupying the property, and the latter, where the commercial property will be rented to a 3rd party company to occupy.
NEWEST ARTICLE
At Grand Union Finance, our blog is here to keep you in the loop about what’s happening in the market. We break down tricky topics to help you understand how we can support you on your journey. Check out our articles to deepen your understanding and discover helpful insights!
How Much Can I Borrow on a BTL Mortgage?
For many buy-to-let (BTL) investors, understanding how much they can borrow on a BTL mortgage can be confusing. A common misconception is that a BTL
Using Bridging Finance to Secure Your Next Property Investment Quickly
In today’s fast-paced property market, acting quickly on investment opportunities can make all the difference. Traditional mortgage applications can take weeks or even months to
What Do Mortgage Lenders Look for in a Buy-to-Let Property?
Investing in a buy-to-let (BTL) property can be a smart way to generate income and build wealth. However, securing a BTL mortgage isn’t as simple
Stay in the loop be the first to know about exclusive offers
Don't miss out on the latest deals and insights from us. Sign up for our newsletter and unlock a world of financial opportunities.
