Finding the right financial partner can be a challenge, especially if your circumstances do not fit the rigid criteria of traditional high-street banks. Together Money is a specialist lender known for looking at the person behind the application rather than just a credit score. Whether you are looking for a residential mortgage, a secured loan, or short-term bridging finance, understanding how to navigate their application process is the first step toward securing the funds you need.
Understanding Together Money Services
Together Money has been a fixture in the lending market for decades, focusing on what they call “common sense lending.” This means they often assist borrowers who have been turned away elsewhere due to self-employment, complex income streams, or less-than-perfect credit histories. Their product range is diverse, catering to both personal and professional financial needs.
Residential Mortgages
For many, a home is the most significant purchase they will ever make. Together offers mortgages for first-time buyers, home movers, and those looking to remortgage. They are particularly helpful for individuals with non-standard properties, such as timber-framed houses or high-rise flats, which traditional lenders might find risky.
Secured Loans
Also known as second-charge mortgages, secured loans allow you to borrow money against the equity in your home without affecting your existing mortgage. This is a popular option for homeowners who want to fund home improvements, consolidate debt, or pay for major life events like weddings while keeping their current low-interest mortgage rate intact.
Bridging Loans
Bridging finance is a short-term solution designed to “bridge” a gap in funding. This is commonly used by property investors or homeowners who want to buy a new property before their current one has sold. These loans are typically repaid within 12 months, often through the sale of a property or by transitioning to a long-term mortgage.
The Step-by-Step Application Process
Applying for a loan or mortgage with a specialist lender follows a structured path. While the process is designed to be efficient, being prepared will help you move through the stages more quickly.
1. Initial Inquiry and Quote
The first step is usually an online inquiry or a phone call. You will provide basic details about how much you want to borrow and the purpose of the loan. Based on this information, the lender will provide an initial quote and a Decision in Principle (DIP). This is not a guarantee of lending, but it indicates that they are willing to consider your application based on the facts provided.
2. Detailed Application
Once you decide to proceed, you will complete a full application. This involves providing deeper insights into your financial history, your current income, and your monthly outgoings. It is vital to be completely honest during this stage, as any discrepancies found later can lead to a rejection.
3. Valuation and Underwriting
For any secured finance, the lender must assess the value of the property being used as collateral. They will instruct a professional surveyor to conduct a valuation. Simultaneously, an underwriter will review your documents to ensure you meet their lending criteria and can comfortably afford the repayments.
4. Formal Offer and Completion
If the valuation is satisfactory and the underwriter approves your file, a formal offer will be issued. Once you and your solicitor review and sign the documents, the funds are released. For a mortgage, this happens on the day of completion; for a personal loan, the funds are usually transferred directly to your bank account or used to pay off existing creditors.
Essential Documentation for Your Application
To speed up your application, it is helpful to have your paperwork ready in advance. Specialist lenders require a comprehensive view of your financial health to make an informed decision.
- Proof of Identity: A valid passport or driving license.
- Proof of Address: Recent utility bills or council tax statements (usually from the last three months).
- Income Verification: For employees, this means three to six months of payslips and P60 forms. For the self-employed, you will likely need two years of audited accounts or SA302 tax calculations.
- Bank Statements: Usually the last three months of personal and/or business bank statements to show your spending habits.
- Property Details: Information regarding the property you are buying or using as security, including the estimated value and any outstanding mortgage balance.
Eligibility and Requirements
Specialist lenders are more flexible than banks, but they still have requirements to ensure responsible lending. Your eligibility will depend on several factors that go beyond just your credit score.
First, the Loan-to-Value (LTV) ratio is critical. This is the percentage of the property’s value that you wish to borrow. Generally, the lower the LTV, the more likely you are to be approved and the better the interest rates you will receive. Second, your Debt-to-Income (DTI) ratio is assessed to ensure that you have enough disposable income to cover the new loan payments alongside your existing commitments.
Finally, the type of property matters. If you are applying for a mortgage on an unusual building or a commercial space, the lender will evaluate the property’s “marketability.” This ensures that if they ever had to sell the property to recover the loan, they would be able to find a buyer.
Tips for a Successful Loan Application
To increase your chances of approval, consider the following strategies before you submit your final application. Preparation is often the difference between a swift approval and a lengthy delay.
- Check Your Credit Report: Even if you know you have credit issues, check your report for errors. Incorrect addresses or old accounts that should be closed can negatively impact your score.
- Reduce Existing Debt: If possible, pay down small credit card balances or personal loans. This improves your debt-to-income ratio and shows financial discipline.
- Be Responsive: Specialist lending often involves more back-and-forth communication. Respond to requests for additional information or clarification as quickly as possible to keep the momentum going.
- Consult a Broker: Many specialist loans are only available through intermediaries. A mortgage broker can help you package your application in the best light and ensure you are applying for the product that best fits your needs.
Conclusion
Applying for a loan or mortgage through Together Money offers a viable path for those who need a more personalized approach to finance. By understanding the different products available and preparing your documentation in advance, you can navigate the process with confidence. Remember that specialist lending is about finding solutions that work for your specific life situation, rather than fitting into a pre-set box.
If you found this guide helpful, consider exploring our other articles on managing personal credit, understanding property valuations, and tips for first-time homebuyers to further your financial knowledge.