Would I Get Mortgage? Buy To Let?

PistolC

Hi all, A little querry for you folk.

Iv been a member here for sometime now & have always found useful info on these forums, this is the first time iv needed to ask for a little help, so here goes, I appoligise in advance if its a little drawn out, Il keep it as short & to the point as possible.

I currently own 1 property outright (No Mortgage) & have a share of 33.33% in 4 other properties in a little negative equity. The house i own outright (Which il call House A) is also rented out bringing me in £700pm. I paid 215k in 2007 for it & now its valued on Zopoola at 190k. My dilema is this, im looking into buying the remaining 66.66% shares from my 2 uncles who iv got involved with in the property game. 2 ways for me to do this,

1) I cut my losses & sell House A to raise the funds, meaning i would own 4 properties, problem here is, when will it sell, will it sell, do i want to take the hit?
2) I re-mortgage with a buy-to-let mortgage on House A for around 150-160k, meaning i would own 5 properties.

Number 2 option is my prefered but i have 1 little problem that i know the banks will see as a big problem. I currently live with my partner (my partners house, my name is not on any papers) & our one year old daughter, when she was born I became a stay at home full-time dad, in otherwords - Unemployed. I know banks wouldnt entertain the thought of lending, but id like to know if given the information above regards my obvious credit standing & the fact im a 3rd owner on 4 other mortgages, would the banks, A Bank, Any Bank be prepared to re-mortgage House A??

I hope this makes sense to you..

Many thanks

luckyfool

Yes, it makes sense.

Two main issues . . . on remortgaging house A to buy to let...

1. Assuming the Zoopla estimate of the properties value is correct then the absolute maximum buy to let mortgage available from anyone would be £142,500.
2. As you say, your employed/unemployed status is likely to cause you problems. It might be that a lender would consider it but very doubtful. With your partner added to that mortgage (assuming they have an income and ideally earn over £25k) then the £142,500 would potentially become achievable.

Another fly in the ointment . . . you are named on another 4 mortgages with your uncles? To buy them out you would need to remortgage or remove them from the mortgages and have a legal transfer of equity done. Your employment status "could" be an issue for them, though if they are on a proper buy to let basis the lender is more concerned with rental income so you might be ok depending on the lender.

PistolC

Thats interesting, the 142k maximum remortgage would be sufficient enough to make it work. That may well be beside the point because, as youve said, a lender would be doubtful to lend me the money considering my non-employment status. I take on board your comment regarding including my partner on the mortgage, for me this is not an option, im trying to keep her out of my business as much as possible, (Incase the relationship goes titts up), Im not on her mortgage for her house & as such i dont have any investment in it & I wouldnt like us to split & her have a say on what would enivitably be her greedy hands on my property. (Its a fiery relationship at times :rotfl:)

Your second point regarding mortgages on other 4 house's. I was going to work it that, I have my uncles sign a contract and have it on film that they have sold me there shares & they take no further interest in the said properties, All this without informing the lenders. Im guessing its wrong & perhaps illegal, How illegal?? Prison Time illegal??

Anyhow I know this is all irrelavant as i may be stuck on step one in obtaining a buy-to-let remortgage in the first place. Il just pull the finger out & go talk with my broker & see what he can come with. I do have House A on the market but i was just prefering to try to keep it & add the other 4 to my collection. Perhaps im just greedy & would be getting in a little too deep on my own. Thanks anyway amigo