Obtaining a buy to let mortgage is very similar to how you would get a residential mortgage in Dubai. First, you should go through the pre-approval process, which usually takes five to seven working days to complete.
This gives lenders the opportunity to assess your eligibility to buy property, so they may ask to see:
- A copy of your passport
- Wage slips from your current employer
Six month’s worth of bank statements
If you’re a career investor and don’t have an employer, you may need to provide more evidence that you can afford to pay back the mortgage in full.
Finding a Property
The best piece of buy to let mortgage advice we can give you is complete pre-approval before looking for a property. If you start the property hunt first, you may end up disappointed if the banks won’t lend you money or you can’t negotiate terms that suit you.
Finding a property can be the toughest step in the process and it also has the potential to be the longest. You’ll need to buy in a popular rental location, which means finding a spot with:
- Great transport links
- Nearby schools
- Plenty of shops
- Green space or nature spots
- Bars / Restaurants
- Entertainment
Remember, any property you purchase to rent out isn’t just an investment. It will be someone’s home, so you should only buy in an area if it has everything a person, couple or family need to live comfortably (depending on your target market).
Obtaining for a Buy to Let Mortgage
With pre-approval in place and a suitable property in mind, the last step is to obtain a buy to let mortgage. This step is more in-depth than pre-approval and will include answering some of the same questions you answered previously such as:
- How much income you earn and the source of your income
- If you have an existing debt
- If your family status has changed (ie. marriage, divorce, children)
They’ll also want to know more details about your property, so expect questions on:
- Cost
- Location
- The type of property (flat, house, villa etc.)
- Whether you plan to renovate and if the property has relevant planning permissions
- If you already have tenants lined up
To make sure the process runs as smoothly as possible, here are our top tips:
- Speak to a professional broker to find the most suitable lender and mortgage option
- Make sure your credit file is clear. Missed payments can be a red flag
- Don’t max out your credit card. It could look like you’re struggling financially
- Make sure to have the full deposit in your account ready to go
Finding the Best Buy to Let Mortgage Deals
You’ll have plenty of banks offering you “the best buy to let mortgage deals”, but only an independent broker with no ulterior motive will be able to source the right mortgage to suit your needs.
Rather than focusing on a product that works in the bank’s favour, our advisors will approach all the suitable lenders in Dubai and negotiate the best rates. Then, we’ll present you with our choices, so you can go with the right option for you and your circumstances.
For straightforward buy to let mortgage advice, the expert and knowledgeable team at Expat Mortgage is on hand to help. Get in contact with us today to find the right mortgage to make your property investment as lucrative as possible