Nearly four years down the line, portfolio business is still more time-consuming than standard buy-to-let for everyone involved – landlords, brokers and lenders.

Submitting these cases involves more work for you and longer processing timelines.

At BM we see a higher proportion of incorrectly submitted portfolio cases than non-portfolio applications. This means more requests for further information before we can progress the case.

That’s why we set up our dedicated Portfolio Support Team in 2019, streamlined our Portfolio Landlord Form and launched a standalone Portfolio Landlord Portal last year to help brokers submit these more complicated cases.

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They’ve all helped speed up app-to-offer times but, during the pandemic, given how busy brokers have been, it’s no wonder that we’ve seen errors on portfolio applications creep up again. We asked our underwriters what common errors they’re seeing and how you can get your cases straight to offer:

Here’s what they said:

1. Choose a lender with a dedicated team

Portfolio lending requires specialist support. There will always be cases where you need to chat through a problem or question with an expert in portfolio lending.

Lenders with dedicated and ring-fenced portfolio experts can better support you with these more complicated cases.

2. Know your way around the different systems

We know lender systems for portfolio business can be a bit confusing, as different pieces of information need to go to different places. Some lenders have partnered with third party providers to value your client’s portfolio, for example.

With BM Solutions, you need to log into two places. The most important document – the Portfolio Landlord Form – is submitted to our standalone Portfolio Landlord Portal. Other documentation, such as the client’s income, is submitted via BM Solutions Online.

3. Check the credit file

Get a copy of your client’s credit file upfront. It alerts you to any issues they forgot to mention and means you can check the credit file matches their portfolio information.

One of the first things we need to do is match up the credit file with each of your client’s listed mortgages. If it doesn’t match, we’ll come back to you to clarify before we can proceed.

Cross-referencing the application with the credit file before submission avoids this delay.

4. Include the residential mortgage

Don’t forget to key the client’s residential mortgage as a commitment.

Lenders need to be able to identify every credit commitment. The BM Portfolio Landlord Form collects information on background buy-to-let properties (both mortgaged and unencumbered), so a residential property needs to be added separately on BM Solutions Online.

5. Get the documentation upfront

If you ask clients to gather their documentation in advance of your first meeting you have more information to work with when sourcing a product.

Plus you can verify what they’ve said on the application and iron out any discrepancies, before uploading the documents when you submit the application.

This makes it much more likely you will move quickly to offer.

6. Prove all sources of income

If your client has multiple sources of income – a property portfolio, a job and earnings from self-employment for example – lenders need proof of each.

You need to collect more documentation upfront, but it will avoid delays down the line.

7. Include savings and other assets

Lenders want to see the full picture to assess your client’s application, including unencumbered properties.

Add in the client’s savings and other assets too, so we get a rounded picture of their financial position. Also use the Additional Information section on the Portfolio Landlord Form to share any other information you feel will be helpful for the underwriter. It might make the difference between a yes or a no!

8. Double check

Double check the case, particularly the details of your client’s property portfolio, to make sure it’s fully up to date.

A delay of days could be prevented by checking addresses and postcodes for example, because we can’t value your client’s portfolio if a digit is wrong on the postcode.

9. Always explain

There’s usually space on lender application forms for you to explain anything that needs clarification. This is your chance to talk directly to the underwriter, so use it.

For example, where a mortgage is made up of several parts – maybe because the client previously raised capital – leave a note explaining this. It will help us match it more easily to the credit file. This kind of detail should be captured under the Additional Information section in the Portfolio Landlord Form.

10. Don’t call us, we’ll call you

Don’t call your lender to tell them you’ve submitted an application.

At BM, our dedicated Portfolio Landlord team will contact you within 24 hours. If we need any further information, we’ll be in touch. The same goes if you find out new information that is relevant to the application. You can edit the case online yourself and we’ll let you know if it affects your client.

We want to give you the best service possible, which is why we’ve put in place alternative ways of getting the information you need.

This frees up our phonelines so, when you really need to speak to us, we can answer your questions quickly and comprehensively. If you do need to speak to us, check out the Portfolio Landlord page on our website for details of how to contact our dedicated Portfolio Landlord team.

 

 

 

For the use of mortgage intermediaries and other professionals only.

The information contained in this article is the property of Lloyds Banking Group plc and may not be reused or publicised without our prior permission. The information provided is intended to be for information only and is not intended to be relied upon.

This information is correct as of July 2021 and is relevant to Birmingham Midshires products and services only.

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