What type of Mortgage? Conflicting advice

newnhambolton

Help I am getting conflicting advice. The situation is that we are hoping to buy a retirement property for my retired parents. My parents' only income is their state pensions and they live in rented accommodation. We are looking at properties around 100K-125K. We have managed to scrap together a deposit of 50K. So looking for a mortgage of 50K-75K. Some advisors have told us that we cannot get a normal residential mortgage because we will not be living there. However, other advisors have told us that we cannot get a buytolet mortgage because the property will not be let out on an AST.

Spoken to London and Country and they told me they cannot advise until we have a firm offer or how much we can borrow. I don't want to start looking and upset my parents, if we are then told we cannot get a mortgage.

Any advise would be appreciated

VIGILANT22

Yes this can be done.......You can get a BTL which you let to family, some lenders allow this....the adviser has to do this as a regulated mortgage rather than unregulated (which BTL normally is).........I am disappointed you haven't been able to meet an experienced advisor....

newnhambolton

Do you know which lenders do this sort of regulated BTL mortgages?

So far the advisors that I have approached don't want to deal with me unless I have a firm offer accepted. (I guess they don't want to do the paperwork for an enquiry) but we need to know how much we can borrow and what the fees/charges are like. This includes the top guns like London and Country.

We thought that we might be able to get a mortgage in principle to show the vendors that we are serious but that has hit a deadend.

VIGILANT22

It is down to the adviser to do unegulated/regulated, what the adviser has to do is make sure the lender is happy with it being a BTL & will allow lending to family...

Wutang_2

VIGILANT22 wrote: »

I am disappointed you haven't been able to meet an experienced advisor....

Yes, me too. And a little upset.

VIGILANT22

Wutang.....you're such a character!!

TMSL

BM Solutions, The Mortgage Works and Coventry will all do regulated btl to family members but will all insist that an AST is in place.

Conrad

HANG ON....

You say it's a retirement property, in which case very few lenders can be considered as most don't lend on 'retirment' property, that is to say, property strictly set aside for retirees only.

From memory none of those B2L lenders listed above will do this.

I do arrange mortgages 'up front' but of course my time is no more free than my clients so I always charge before significant work is done otherwise you end up chasing around for weeks on people who then don't proceed / change thier minds.

L&C are not 'top guns', they are the B&Q of the mortgage world.

Conrad

VIGILANT22 wrote: »

I am disappointed you haven't been able to meet an experienced advisor....

Customers have to understand we cannot spend hours in research unless we have a firm client commitment. Imagine yourself spending half a day checking everything out without any real indication whether the client will use you. Now if your'e a builder spending hours on quotes worth £10,000 y to you then sure you can afford to 'waste' time on quotes / research, but the commision on a mortgage after Tax and expenses can be vannishingly small, so we simply cant waste days on end each week with people that are'nt commited. The only way to really weed out the time wasters is by asking for some money up front.