How is HCM different to my other options for getting a holiday let mortgage?
A good question, and we are glad you asked!
By applying direct to a specific lender you are essentially putting all your eggs in one basket, and risk repeating the process if that is not successful.
You could try to book a meeting for three weeks’ time with a traditional mortgage broker and endure a painful “mortgage interview” with plenty of back and forth, questions and form filling only to find out they know little about holiday letting.
Or you can apply through HCM and be in control of your own process as our technology enables you to work through the information gathering phase, one step at a time, at a time and place that suits you. On the train to work with your iPhone? No problem. Our auto-save function makes sure that your data will never be lost, even if the train goes through a tunnel.
What’s the process to getting my mortgage with HCM?
It is really simple – all you need to do is create an account, complete our tailored online data gathering process, then arrange to have a nice conversation with a friendly, HCM holiday let mortgage advisor.
Once you’ve decided which mortgage you want to apply for, they will ask you to upload the documents needed to support your application and then bingo, we will run the entire application process for you, liaising with the lender on your behalf and updating you via email and SMS.
How can I get a check to see if I am eligible for a holiday let mortgage?
We understand that early in the process you may want to get a feel for whether or not your situation and personal circumstances are such that you are likely to get a holiday let mortgage, or not.
Therefore, we have built into the system, in the very first section called “Get started” (see our Starter guide for more details), the option for you to request an Initial Assessment.
By answering a few simple questions about your situation, an Expert Advisor can look through your information, cross check with the market and current lending criteria, and then get back to you with their view on viability.
We recommend that all new customers request such an assessment as it only takes a few minutes to complete and it can potentially save you hours of time!
Why do I need to have a phone call with an Advisor?
As part of giving outstanding customer service, we like to sense check every application, personally.
There is a stage in the process, after you have provided all your personal and financial information, when you click to request Expert Advice. After clicking that button, you will be allocated an expert who will look through your information, go away and research the market to formulate a list of mortgages and lenders that you are eligible for. They will then review and select the very best product for you and draft something called a Mortgage Illustration, detailing everything about the mortgage.
Your advisor will then email you to arrange a phone call, and on that call will walk you through their research and recommendation.
What information do I need to complete the process?
Before you start the information gathering process, we strongly recommend that you have a read of our handy Information Checklist, which lists all the types of information you should have to hand before you start.
In short, for each applicant, you should aim to gather various personal identification and proof of address documents (think passport, driving license, utility bill), details of income, outgoings, assets and liabilities. You will also be asked about their citizenship and credit history, so make sure you have that information to hand, too.
You will also need to have to hand, your latest credit report, in a digital format, like PDF. If you don’t already have access to such a report, try getting a free one from Noddle (https://www.noddle.co.uk/).
Finally, we will need to understand a bit about the property to be mortgaged, so we will ask you for information like the market value, address, construction and a projection of the likely income the property will generate through holiday letting (usually provided by a holiday letting agent) and Assured Shorthold Tenancy (which can be provided by an Estate Agent).
How much does it cost for me to apply for a mortgage through HCM?
For every successful mortgage we place, we receive a referral fee from the lender.
We will always recommend the best product for your unique circumstances, regardless of lender and whether they pay a referral fee or not.
How are you regulated and is my information secure?
HCM is an Appointed Representative of Julian Harris Mortgages Limited, Julian Harris House, Musgrove, Ashford, Kent, TN23 7UN, which is authorised and regulated by the Financial Conduct Authority (FCA). Julian Harris Mortgages Limited’s FCA Register number is 304155.
Will I lose my information when I log out?
There is nothing more frustrating than losing all the data you have just typed into a form. From the very outset, we have designed our system to avoid this issue.
We have made this super simple; your application details are autosaved every few seconds, throughout your application process, meaning you can pause at any point in the process and pick up your application whenever you want, from wherever you want, at any time.
Your details will be stored safely on our system for approximately 6 years, primarily for regulation purposes. This means that you can log back in at any point, review a previous application prior to starting a new application, or contact us to create a new copy with your data pre-loaded.
Do I have to use my computer, or can I use my phone or tablet to complete or access my application?
Our online platform is completely mobile-friendly and you have 24/7 access on any internet-connected device you choose. At home or in the office from your PC, relaxing on the sofa with your iPad or on your smartphone whilst taking the train to work. Easy.
Which lenders do you work with?
The market for holiday let mortgages changes all the time and HCM works constantly to explore and developer its relationships with lenders. As at the end of January 2019, HCM are tracking 22 lenders who are actively involved in providing around 87 mortgage finance products for holiday cottages. Over time we expect this list to grow.
Will you perform a credit check on me?
No, we won’t, but your lender will.
Given that we ask you to submit your existing credit report to us, we have no need to run a credit check on you. Lenders, however, have access to more detailed credit history reports than anybody else and they will run a credit check, but only with your full consent.
When does the credit check take place?
Once you have had a call with an expert advisor and together selected your preferred mortgage, you will be asked to review and accept a series of key mortgage documents, then upload what supporting information we will need to make your actual mortgage application.
It is at this point that you have the option to click to confirm your full consent to proceed with a mortgage application on your behalf. Once granted, we will proceed with the application with your selected lender and normally the credit check is performed during the Decision in Principle (or ‘DIP’) stage.
The DIP is an indication as to whether the lender will give you a mortgage based on your credit status and some essential information, such as combined income. It is not a mortgage offer and is not 100% guaranteed.
Some lenders are willing to run only a “soft” credit check during this process, meaning it does not leave a footprint on your credit history. However, most will do a “hard” credit check that will leave a footprint on your report.
How long does it take to complete the online mortgage form?
Completing our online form is really simple and, as long as you have all the information to hand, you should be able to complete the entire form in approximately 25 minutes or less.
You will need to know full personal and financial details for each mortgage applicant.
How long does it take to get a mortgage?
This is dependent on many factors, including the complexity of your personal situation and the lender that you ultimately apply to. Given the unique nature of every application and the differences between all the holiday let mortgage lenders, it is impossible to tell you exactly. On average though, it usually takes around 3 weeks from a full lender application to approval/mortgage offer.
Given our experience of each lender and the impact of various personal factors, once you have completed your application and have had a call with your expert advisor, they will be able to give you a clearer idea of how long it is likely to take for you.
We will also keep you regularly updated via text, email or phone call throughout the application process, so you know the exact status of your application. We are also very happy to hear from you via email, chat or phone if you have any questions throughout the process.
When should I create an account?
Our website has been specifically designed to help you at every stage of your holiday letting journey, so we recommend you create an account regardless of whether you are only just considering holiday letting or you are already a long way on that journey and are now desperate for a mortgage offer ASAP.
Our Starter Guide outlines which sections of the application we recommend you complete based on your personal situation, in order that you minimise data input and get the valuable data you need for your particular stage of the journey.
How does the affordability calculator work and is it accurate?
The affordability calculator allows you to input and play around with your income, property value and provable holiday letting revenue to see how much you might be able to borrow. It has been built specifically for holiday letting and is based on the affordability mathematics used by the top holiday let mortgage lenders.
Of course, this is just an indication, and is not a guarantee.
Holiday Let Mortgages. Done.
Holiday Cottage Mortgages Limited is an Appointed Representative of Julian Harris Mortgages Limited, Julian Harris House, Musgrove, Ashford, Kent, TN23 7UN, which is authorised and regulated by the Financial Conduct Authority (FCA). Julian Harris Mortgages Limited’s FCA Register number is 304155. The Financial Ombudsman Service (FOS) is an agency for arbitrating on unresolved complaints between regulated firms and their clients. Full details of the FOS can be found on its website at www.financial-ombudsman.org.uk
Your home may be repossessed if you do not keep up repayments on your mortgage. Pure holiday let, buy to let and commercial mortgages are not regulated by the FCA. Non-standard applications may attract a broker fee of up to £995.