Help - no idea what i should do - remortgage

Greentea

I have 2 properties both mortgaged.

Prop 1 main residence - approx £31,000
Prop 2 rented - approx £51,000

I applied to the Nationwide for their 5 year fixed rate in Oct - I believe the rate was 4.69.

They will only lend me £80,300 and insist as a condition of the mortgage I pay back both mortgages. Which doesnt add up.

I have already paid £199 and £95 in arrangement and admin fees.


When I originally applied for the mortgage I specified that I wanted the extra on my mortgage to pay back another mortgage on the rented property. But I didnt realise this would now incur extra solicitor fees (solicitor hasnt specified) and that this would be a condition of the mortgage.

They say I can borrow £31 for my main residence.

So now I dont know what is best to do.

Really I wanted all the mortgage together, to reduce fees.

Plus I have been reading about interest rates and wonder was this 5 years fixed rate such a good idea?

I need to do something im on the SVR now.

Any advice out there?

herbiesjp

So you want to have the whole mortgage of £82k on just one property?

Is that correct?

Which property would that be and what would the value of that property be?

Greentea

Thats correct herbiesjp. I want the mortgage on my main residence, its valued at £140,000.

Nationwide will only lend me £80,3000 due to their affordability criteria.

I know there are other motgage lenders out there that will lend more, but if i change now i will end up losing the admin and arrangment fees.

herbiesjp

Difficult to say anything else without knowing the full details about your income and other financial liabilities.

However, you could go back to them and include part of your BTL income - their criteria has just changed and they may now take this into account(in part) if you are short on that front - give them a call

HTH

MortgageGenie

Hi,

I don't understand why you want to get rid of your BTL mortgage and transfer all the borrowing onto your main residence when the cost of the interest against the BTL mortgage is offset against the rental income?

Are you a none taxpayer or have you agreed something with the IR to offset the cost of the interest from your main residence against rental income?

Greentea

Thats interesting Mortgage Genie. When I bought the btl I remortgaged my main residence as well. So I have been using the interest paid on this mortgage as well as the btl mortgage interest for IT. I assumed it was fine to do this? I was intending to continue doing this - do you need special permission to do this?

herbiesjp

That's all assuming the property value and rental income will support and justify the loan in the first place.