Calling all mortgage Advisors - Need your Advice Please!

The_Incredible_Schmoo

Good afternoon all,

Just need some advice on my current situation...

Basically my current fixed rate residential mortgage deal coming to an end at the end of May - From my mortgage documents it say's I will end up going on fixed rate with Mortgages PLC (original mortgage provider).

However, now want to change my mortgage to BTL (me moving up north) and parents have offered to move in to house (long story - but mum is really keen to move in to house as its in the area she was originally born and spent her early life).

So looking for a BTL mortgage! (Or can I apply for a standard remortgage if I'm no longer living there?)

House is worth approx £120,000 (Small village/town about 15 miles outside Cardiff) near Blackwood (if anyone knows where that is?)

My mortgage is current £83,000, but ideally looking to borrow about £90,000 (expense of relocation etc), so that's 75% LVT assuming the house is valued at £120,000 - Had a quick look at prices on the internet and the average asking price for the area seems to be £128,000. House is a 3 bed semi, with a nice size garden, drive and modernised through out with added gf extension for kitchen/Dinning room.

Now the problem -

My financial record is not great (Made Bankrupt in April 2004 & discharded in Feb 2005 - So just over 5 years ago).

No issues since though and had my mortgage for last two years without issue

PS. My current wage is £24000 PA (Pay increase in August up to £25500).

So then mortgage guru's what are my options? :eek:

but keeping in mind....

1) Not moving up North is not an option - Job/partner related and I've been doing it on/off for the last few months (but 'living' in my own home in S.Wales for mortgage purposes).

2) I'm a worryer by genetic makeup - So want everything sorted out properly - i.e. No remortgaging and saying I'm still living there when I'm not (don't think my mental/physical health could take this on a long term basis).

3) I've spoken to my previous mortgage advisor about a month ago and he said I've got no hope and to basically keep quiet! However I got the impression he was a) not that interested b) not really up to speed in his role? But was he right?

4) If there are options for me to follow, can anyone point me in the direction of a good mortgage advisor who can advise me (unlike my previous advisor, see point 3).

Any help would be greatly appreciated.

Thanks

Schmoo :beer:

Emmzi

why can't your parents buy the house from you?

herbiesjp

What would be the expected rental income on the open market for your property?

The fact you want to let to family will narrow your options, but you should be able to do this

The_Incredible_Schmoo

Hi,

Firstly thanks for posting so quickly.

Please find below some further information;

My parents buying my house again is not an option, both are semi-retired and are happy with the little financial commitment they currently have :rolleyes: i.e sold they're own house about a year or so ago with the majority of which being put away as a retirement nest egg.

I've also had a quick internet trawl and the average rental quotes in the area for a 3 bed semi seem to be in the range of £450 to £550 PCM?

herbiesjp

Well on an interest only basis it should cover the mortgage payments just about, and you could find a few lenders that would agree this.

If looking to have on a repayment basis you will be looking at over £550 pm

I'd suggest speaking to a whole of market adviser to look at this, as at 75% options are limited, and adding in the fact it is rented to family further narrows down the options.

Then out of those, you need to see whether they are happy with the rental covergae based on their particular criteria.

The_Incredible_Schmoo

Hi Herbiesjp, once again thanks for your input :beer:

Just one questions, how do I search out a decent all the market advisor?

Thanks

Schmoo

herbiesjp

Can friends or family recommend one?

beecher

Wouldn't selling be the best option? You say there's other rental properties in the area so couldn't your parents rent elsewhere if they wanted to move to the area? All seems very complex when selling would surely be simpler?