Lender that will take FUTURE rental income into account?

CaptainHangover

Hi

Im looking round for a mortgage for a new house i want to put an offer on. While keeping my existing appartment to rent out. So I spoke to the halifax today and they said i can have a mortgage for 210k (in addition to my flat one) but if i was already letting my property i could have a second one up to 248k which would be enough for me to put an offer in on the house ive seen.

Are there any lenders that will take the future rental income into account? The guy on the phone from the halifax (who was very helpfull) said you might be able to get round it if you find some tenants and send the signed tennancy agreement in that should get it past the underwriters....!

2 problems with this...

Firstly how do i manage that in a week? Couple of free months rent maybe?

Secondly if it all falls through for what ever reason ive then made myself homeless :eek:

Any really clever folk in here able to help me?

Regards

CH

herbiesjp

Start from the beginning:

1) What is the mortgage on property the first property and what is the property value?
2) What rental income can you get on that property?
3) What is the purchase price of the second property, and what deposit do you have?
4) What is your income?
5) Do you have any other debts?
6) Do you have a good credit histroy?

CaptainHangover

herbiesjp wrote: »

Start from the beginning:

1) What is the mortgage on property the first property and what is the property value?
2) What rental income can you get on that property?
3) What is the purchase price of the second property, and what deposit do you have?
4) What is your income?
5) Do you have any other debts?
6) Do you have a good credit histroy?

Ok Here goes

1) £118k remaining on market for £149k
2) £525-£500pcm
3) £249k and £25k
4) Joint income from last 12 months £57k (Monthly after tax £3450)
5) No other depts what so ever
6) Credit cards paid in full every month when used - Exelent records to the best of my knowledge

Thanks for the help...

CH

herbiesjp

Forgot one:

1) What is your current mortgage payment?

You would need to get consent to let from your current lender, or change this to a BTL. However changing to BTL given the figures will not be possible.

As long as you can get consent to let, then you have a chance with this scenario. However the rental incoem would need to cover the mortgage payment on property 1

These are pretty complicated to get agreed, as you could fall outside of criteria on so many fronts either with the first property or the new property.

I would strongly suggest getting a whole of market mortgage adviser to help you out with this

CaptainHangover

Ahhh current payment is £574/month

Also thats with nationwide, ive read on here that people have just rung them up and pays a smallish fee of around £200 to change it to allow consent to let. However i was planning on ringing them tomorrow anyway to get a definate on that one.

Also whith regards to whole of market mortgage advisors... Where do i find a good one of these? Do you have any recomendation?

Thanks again

CH

Charlton_King

I have a similar question and apologise to the OP for in any way appearing to hijack the thread. If necessary, I shall put this up as a separate thread.

We are currently with Accord Mortgages, nearing end of a 3 year fix (end Jan) and have a very strange situation developing...

My wife and I have both had to abandon our full time jobs in the last year for a variety of reasons, including illness, and take up self employment at much lower income levels. I was very fearful for what this could mean when we try for a new product.

Through deaths in the family, we have now unexpectedly come into possession of two other properties which we intend to rent out. The rental return, even after tax, looks set fair to make up the gap.

However, by next January we shall have nowhere near a full year's 'accounts' or any HMRC documents we could show Accord or any other potential lender.

Are there any brokers out there who could advise us on where we stand?

CaptainHangover

Hijack away if it helps you

Keeps it bumped

herbiesjp - Ive been looking round the MSE website at 'whole of market lenders' and i was thinking of calling 'london and country' tomorrow would you recomend them or someone else?

Regards

CH

herbiesjp

CaptainHangover wrote: »

herbiesjp - Ive been looking round the MSE website at 'whole of market lenders' and i was thinking of calling 'london and country' tomorrow would you recomend them or someone else?

Sorry - it's against board rules for advisers to recommend

Mrs_Bumble

You need a good local, independent, whole of market mortgage broker as opposed to a lender. You can give L&C a try or ask your friends/family/work colleagues for recommendations. Recommendation is often the best way

Mrs_Bumble

Charlton_King wrote: »

I have a similar question and apologise to the OP for in any way appearing to hijack the thread. If necessary, I shall put this up as a separate thread.

We are currently with Accord Mortgages, nearing end of a 3 year fix (end Jan) and have a very strange situation developing...

My wife and I have both had to abandon our full time jobs in the last year for a variety of reasons, including illness, and take up self employment at much lower income levels. I was very fearful for what this could mean when we try for a new product.

Through deaths in the family, we have now unexpectedly come into possession of two other properties which we intend to rent out. The rental return, even after tax, looks set fair to make up the gap.

However, by next January we shall have nowhere near a full year's 'accounts' or any HMRC documents we could show Accord or any other potential lender.

Are there any brokers out there who could advise us on where we stand?

It isn't income until you can prove that you are receiving it, which is after the fact and after submitting accounts. It isn't always as easy as it appears to make money out of these things.

If you have come into more than one property would it not make more sense to sell one and pay off your own mortgage particuarly considering your own economic position at present?

CaptainHangover

Mrs_Bumble wrote: »

You need a good local, independent, whole of market mortgage broker as opposed to a lender. You can give L&C a try or ask your friends/family/work colleagues for recommendations. Recommendation is often the best way

Ive asked round and no freinds or family know one or have used one.

Anyway L&C were useless i pretty much got a 'no go away' which has dented my confidence somewhat. Strange how the guy from Halifax was quite bullish that it would go though ok. Maybe it was the old salesman/commision talking.

However im getting him to finalise that morgage promise at 210 and im going to add a bit more to the depoiste and put a pretty low offer in and hope they bite. I dont expect they will but i do know they want rid so we will see.

Thnaks for all the help on this thread

Regrards

CH