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  • FIRST POST
    • single_lonely
    • By single_lonely 12th Oct 17, 6:57 PM
    • 281Posts
    • 53Thanks
    single_lonely
    remortgage - own another mortgage free house
    • #1
    • 12th Oct 17, 6:57 PM
    remortgage - own another mortgage free house 12th Oct 17 at 6:57 PM
    I need to remortgage my current and main house. Own 2 more houses which are mortage free and are rented out privatley. Income of Less than 27k, age 36.

    What questions are the mortgage lenders (halifax santander) likely to ask over the phone or face to face. is it better going through a broker in cases like this (face to face).

    Already have income and bank/work details.
    What details would i need(if any) for the properties that are rented out.


    (asking for a third party)
Page 1
    • single_lonely
    • By single_lonely 14th Oct 17, 7:55 PM
    • 281 Posts
    • 53 Thanks
    single_lonely
    • #2
    • 14th Oct 17, 7:55 PM
    • #2
    • 14th Oct 17, 7:55 PM
    hi, i realise not anyone would have the answers but there been over 160 views, can anyone signpost other forums or posts on here which are similar. I cant find anything. thanks in advance
    • YHM
    • By YHM 14th Oct 17, 7:58 PM
    • 303 Posts
    • 98 Thanks
    YHM
    • #3
    • 14th Oct 17, 7:58 PM
    • #3
    • 14th Oct 17, 7:58 PM
    Would suggest going through a broker and let them worry about the questions on the application form. The fact find they will ask you will gather sufficient information to allow them to review the market for you and find a suitable lender
    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
    • amnblog
    • By amnblog 14th Oct 17, 8:26 PM
    • 10,071 Posts
    • 3,925 Thanks
    amnblog
    • #4
    • 14th Oct 17, 8:26 PM
    • #4
    • 14th Oct 17, 8:26 PM
    Some lenders will want to see the tenancy agreements on the let properties. If you want to include the rental income for affordability, expect to show it on your tax return.
    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.
    • Thrugelmir
    • By Thrugelmir 14th Oct 17, 9:02 PM
    • 56,198 Posts
    • 49,580 Thanks
    Thrugelmir
    • #5
    • 14th Oct 17, 9:02 PM
    • #5
    • 14th Oct 17, 9:02 PM
    Remortgage for what purpose. Release equity?

    Why the concern over what questions may be asked?
    “Opportunities come infrequently. When it rains gold, put out the bucket, not the thimble”
    ― Warren Buffett
    • ladybabe
    • By ladybabe 14th Oct 17, 11:21 PM
    • 351 Posts
    • 406 Thanks
    ladybabe
    • #6
    • 14th Oct 17, 11:21 PM
    • #6
    • 14th Oct 17, 11:21 PM
    both brokers and lenders direct should essentially ask the same questions as per the regulation changes that happened some time ago...
    There are people so poor that the only thing they have is money
    • single_lonely
    • By single_lonely 14th Oct 17, 11:22 PM
    • 281 Posts
    • 53 Thanks
    single_lonely
    • #7
    • 14th Oct 17, 11:22 PM
    • #7
    • 14th Oct 17, 11:22 PM
    Remortgage for what purpose. Release equity?

    Why the concern over what questions may be asked?
    Originally posted by Thrugelmir
    remortgage as current term ended several months ago and now im on standard rate.
    not concerned, need to go prepared but with what documents?
    I don't want to use the rental as income so tenancy agreement etc shouldn't be needed? thanks
    • minimike2
    • By minimike2 14th Oct 17, 11:35 PM
    • 1,913 Posts
    • 1,410 Thanks
    minimike2
    • #8
    • 14th Oct 17, 11:35 PM
    • #8
    • 14th Oct 17, 11:35 PM
    The tenancy agreements aren't just to show income (which is what the tax calculations for your self assessment are used for), but to discount the mortgage payment as a financial commitment.

    If you can't prove that the properties are rented then the commitments will end up in your affordability calculation at the banks set affordability rate.
    I am a mortgage industry professional. 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
    • single_lonely
    • By single_lonely 18th Oct 17, 9:51 PM
    • 281 Posts
    • 53 Thanks
    single_lonely
    • #9
    • 18th Oct 17, 9:51 PM
    • #9
    • 18th Oct 17, 9:51 PM
    The tenancy agreements aren't just to show income (which is what the tax calculations for your self assessment are used for), but to discount the mortgage payment as a financial commitment.

    If you can't prove that the properties are rented then the commitments will end up in your affordability calculation at the banks set affordability rate.
    Originally posted by minimike2
    the house is paid for so no financial commitment. in this case they shouldn't end up in any affordability calculation? thanks
    • VFR-Rider
    • By VFR-Rider 19th Oct 17, 8:08 AM
    • 108 Posts
    • 115 Thanks
    VFR-Rider
    Even though they're mortgage free, there's upkeep (some applies irrespective of rental status) - council tax, rates, maintenance etc.
    saving, saving, saving!
    • minimike2
    • By minimike2 20th Oct 17, 12:01 PM
    • 1,913 Posts
    • 1,410 Thanks
    minimike2
    the house is paid for so no financial commitment. in this case they shouldn't end up in any affordability calculation? thanks
    Originally posted by single_lonely
    The lender decides what is or isn't a financial commitment.

    If you can't demonstrate the properties are rented out in a way which satisfies the lender, then as Rider says, commitments can be included.

    Why are you reluctant to provide copies of tenancy agreements / your tax returns? It is just a case of getting them out the file and taking them to your appointment.....
    I am a mortgage industry professional. 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
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