Turned down for add'l borrowing on home mortgage because I have 5 BTL properties

minimike2

Need someone to confirm about the stamp duty too.... I think there is that spouse's exemption, but I havent done one in over 2 years so I cant say 100%.

Definately go see a broker else you could end up wasting your time making multiple applicaitons.

silvercar

No stamp duty on transfers between spouses.

Although you have to be honest with lenders, you don't actually own the 5 BTLs. They are owned by a separate company, completely separate legal entity to yourself.

It seems that on the basis of your salaries only, you don't have sufficient equity to afford the larger mortgage. If you were doing the application on your total earnings, this would include your salary and profit from your company and your wifes earnings and any profit from the jointly owned BTL.

bargainbarmy

silvercar wrote: »

No stamp duty on transfers between spouses.

Although you have to be honest with lenders, you don't actually own the 5 BTLs. They are owned by a separate company, completely separate legal entity to yourself.

It seems that on the basis of your salaries only, you don't have sufficient equity to afford the larger mortgage. If you were doing the application on your total earnings, this would include your salary and profit from your company and your wifes earnings and any profit from the jointly owned BTL.

I don't understand why you say we don't have sufficient equity for the larger mortgage as our loan to value at present is only 25%. Based on our salaries a mortgage of £158K is less than 3.5 times our joint salaries. At present we owe £118k and £90K of that is paid off in 6 years time.

ziknik

Hey bargainbarmy. How are you getting along with this?

I don’t really understand why you are *desperate* to set up a rainy day fund.

Have you/your wife lost your jobs?

socrates

I think I recognise your problem - when you ask a lender for additional funds they immediately ask why it is needed. If your answer is for a rainy day forget it!

IMO you need to follow this strategy:

Get a financial adviser to handle the whole thing and negotiate up front re charges. This is the best option.

Approach First Direct and try for their 1.49% over base lifetime tracker offset. I too have several BTL properties and if you can prove to FD that they are self supporting they will ignore them for the purposes of their loan. I also think that an offset mortgage is always good for BTL landlords - you can take when you need and put back in when you don't. Plus you can get up to 80% of the valuation and you only pay interest on what you use. Better to get an account with FD before you apply as the paperwork goes through quicker but allow 12 weeks. If you get a friend who already has account with them to refer you - you will both receive £50 or £100 not sure how much.

In all cases have your rental accounts up to date and ready for the lenders especially as now your mortgages have gone down (hopefully) you will be showing larger profits!

I am sure there are mortgage advisers on here who have more solid advice but its a strategy!

payless

stamp duty
http://www.hmrc.gov.uk/so/technewsletter3-2.htm

Where a couple are getting married / entering into a civil partnership / setting up home together and want to transfer one partner’s property into their joint names.
There is no SDLT relief for transactions in connection with marriage or entering into a civil partnership.
SDLT is charged where an interest in land is transferred for consideration. Consideration will include:

• any cash payment and
• any assumption of liability to pay a mortgage. The liability assumed is taken to be a proportion of the outstanding mortgage corresponding to the proportion of the share of the property which is acquired.

---

in this case- appears if no cash swapping hands that the sums hereare below the stamp duty land tax threshold of £125,000 ( assumings thats whats used for this calc) there will be no tax to pay.

neverdespairgirl

bargainbarmy wrote: »

I need some for home improvements as well

want, rather than need, surely?

But all this doesn't matter anyway. After all, in September 2007 you were being extremely patronising and saying there was no possibility of a crash, and you knew everything there was to know:

I'm really sorry to have to say this to you CarolT but you are talking through your proverbial. I am asurveyor and know the trends of the market inside and out. there is not going to be a crash. Prices will level out , possibly drop 5% but that's it.

The crash you are looking for is NEVER going to happen. You had better realise this now as all that money you are paying in rent is going down the drain and you will never see anything for it.

My advice to you is to buy something, anything, possibly not even for you to live in but to rent out. You could even continue to live in your council house butat least you would have a foothold on the market.


No market has crashed by 50% ever. The words 'wake up' and 'coffee' are coming to mind !!!

overlander

You are overlooking one small point you say you do not want to sell for any less because you are "making" £200 pm. Not if your house is losing 700-1000 a month! If you hold onto it and are then forced to sell you really will lose some serious money.

johnycoldears

neverdespairgirl wrote: »

want, rather than need, surely?

But all this doesn't matter anyway. After all, in September 2007 you were being extremely patronising and saying there was no possibility of a crash, and you knew everything there was to know:

I'm really sorry to have to say this to you CarolT but you are talking through your proverbial. I am asurveyor and know the trends of the market inside and out. there is not going to be a crash. Prices will level out , possibly drop 5% but that's it.

The crash you are looking for is NEVER going to happen. You had better realise this now as all that money you are paying in rent is going down the drain and you will never see anything for it.

My advice to you is to buy something, anything, possibly not even for you to live in but to rent out. You could even continue to live in your council house butat least you would have a foothold on the market.


No market has crashed by 50% ever. The words 'wake up' and 'coffee' are coming to mind !!!

Don't you just love schadenfreude when it's fully deserved.

Oh sod it, let's call it by it's proper name - gloating - and it's still fully deserved.

wharty

johnycoldears wrote: »

Don't you just love schadenfreude when it's fully deserved.

Oh sod it, let's call it by it's proper name - gloating - and it's still fully deserved.

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