Best mortgage type?

Hello, I'm looking for some advise please, I'll try and keep it as short and as simple as I can.

My wife and I want to buy another property to renovate and sell on and then do the same again and again etc.

What type of deal are we looking for?

I just had a broker guy round today for a brief chat and he said basically he could probably get us a better deal on our current mortgage and an extra £10k in our hand, we were hoping for more than that as that will be nowhere near enough for a deposit on a property and also to renovate it.

I appreciate I need to give more details before anyone can advise so here's what I have:

Current mortgage - £108,000
Property value (approx) - £200,000
Car finance - £250 pm (40 months remaining)
My wife's income - £16,500 before deductions
I'm self employed and the company is limited, last financial years net profit was £17,000
The broker guy didn't use this information though, he asked me for three years SA302's which showed as follows
2014 - £7,696
2015 - £7,904
2016 - £8,060

Not sure what other info is required but please ask if there is?

The broker guy was looking at buy to let deals on his laptop and didn't mention any other type of mortgage, I was under the impression that we'd only need a buy to let mortgage if we intended on letting the property out?

Any advice much appreciated,

Thanks
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  • mikeopvc
    mikeopvc Posts: 912
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    As above but PRETTY PLEASE :D:D:D
  • MortgageMamma
    MortgageMamma Posts: 6,686
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    mikeopvc wrote: »
    Hello, I'm looking for some advise please, I'll try and keep it as short and as simple as I can.

    My wife and I want to buy another property to renovate and sell on and then do the same again and again etc.

    What type of deal are we looking for?

    I just had a broker guy round today for a brief chat and he said basically he could probably get us a better deal on our current mortgage and an extra £10k in our hand, we were hoping for more than that as that will be nowhere near enough for a deposit on a property and also to renovate it.

    I appreciate I need to give more details before anyone can advise so here's what I have:

    Current mortgage - £108,000
    Property value (approx) - £200,000
    Car finance - £250 pm (40 months remaining)
    My wife's income - £16,500 before deductions
    I'm self employed and the company is limited, last financial years net profit was £17,000
    The broker guy didn't use this information though, he asked me for three years SA302's which showed as follows
    2014 - £7,696
    2015 - £7,904
    2016 - £8,060

    Not sure what other info is required but please ask if there is?

    The broker guy was looking at buy to let deals on his laptop and didn't mention any other type of mortgage, I was under the impression that we'd only need a buy to let mortgage if we intended on letting the property out?

    Any advice much appreciated,

    Thanks


    You could look at bridging finance as you have your own residential property with plenty of equity. Bridging works differently from a traditional mortgage in that it can be used for short term property purchase and refurbishment. You can also roll up what would be the monthly payments into the loan itself, freeing up your income/renovation budget until it is sold.


    The buy to let route is still possible, but if you went that route you would have to say you intended to rent out the property on the application form, and you would have to pay early repayment charges when you sell it. Also if the property needs heavy refurb such as no bathroom or kitchen in it, or its not in move in condition, that can sometimes be prohibitive with buy to let mortgages/ With bridging loans you don't have that disadvantage but the initial fees can at times be steep. Don't let that put you off though, what you need is somebody competent who can do a direct comparison between a bridging loan and the best buy to let mortgage available to you.


    Hope that helps


    MM
    I am a Mortgage Adviser

    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • amnblog
    amnblog Posts: 12,408
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    Are you saying you are taking £8K PAYE from the firm and making £17,000 profit?

    If so, I can see no reason why you cannot pull a lot more than £10,000 out of the property.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • mikeopvc
    mikeopvc Posts: 912
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    MM Thanks for the reply and advice, I will look into the bridging loan option, would I need to speak to a financial adviser for that or my current lender?
  • amnblog
    amnblog Posts: 12,408
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    You need a broker fpor the bridging option but you need to understand.

    1. You still need to put a solid deposit down on the new purchase
    2. The rates are eye-bleeding
    3. The project needs to be highly profitable for it to work
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • mikeopvc
    mikeopvc Posts: 912
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    amnblog wrote: »
    Are you saying you are taking £8K PAYE from the firm and making £17,000 profit?

    If so, I can see no reason why you cannot pull a lot more than £10,000 out of the property.

    Yes that's correct, I also thought it was a little low as we were hoping to raise between 20-30K
  • amnblog
    amnblog Posts: 12,408
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    Sounds like the broker is new to the job.

    Ask a good one for their view.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • mikeopvc
    mikeopvc Posts: 912
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    amnblog wrote: »
    Sounds like the broker is new to the job.

    Ask a good one for their view.

    OK I will do just that, when I find one,:D I don't suppose you know of any up here in North Wales?
  • amnblog
    amnblog Posts: 12,408
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    I don't, but your friends might.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • mikeopvc
    mikeopvc Posts: 912
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    Looking online at available brokers local to me, they charge £95 fee on application and up to £1,295 on completion.
    I thought brokers were paid by the lender?
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