Hi can anyone please help??? Buy to let mortgage on a prefabricated house!!!

pompeygirl69r

Hi this is a bit long winded but i'll try and keep it as short as possible. I am enquiring on behalf of my partner who really needs some help/advice.

At the present time he is a home owner and all his mortgage payments are up to date. His credit rating is classed as poor, although all his payments are up to date it is like this because of a resolved(paid) default which is due to come off in july.

My other half's mother wants to sell her prefabricated house to my other half for £45,000 it is currently worth around £120,000. He wants to get a buy-to-let mortgage and we have people lined up to move in already.

We have been to see a mortage broker who said that he had put in an application with Abbey, everything went through fine my other half passed the credit check but the last thing we needed was a survey as the previous one has just recently ran out. The broker arranged for a surveyor to come out and the surveyor refused to do a survey for no reason?! The result was that Abbey refused the mortgage!

This has happened over a period of about three months. The broker said he has other lenders that he will apply to and to go back into his office last week. When my other half went in they were shocked too see him as though they had forgot they told him to pop in! They said that they haven't heard anything yet then quickly changed the subject to try and get my other half to do a quick cheap sale with them so he could make a quick little profit. My other half explained that he is doing this as an investment for his childrens future and is not interested in the money side of things. They told him to return later in the week too see the progress of the other lenders, When he returned later in the week they're attitude had changed, they seemed un-interested and told him no-one is willing to lend and they don't want to waste anymore of his time!!!

It seems to me they were cowboys who were just dragging it out so my other half would get fed up and sell it cheap to them! They have not asked us for any money for the work they have done so far?!

I want to see if anyone can help, i've tried searching for lenders or brokers that specialize in prefabricated mortgages for buy-to-let but it is far from straightforward and i don't want to go down the same road. Any advice would be highly appreciated. Thank you in advance

somethingcorporate

Do you have a deposit for the house? Could this be a reason that mortgages are not forthcoming.

That or you had a dodgy broker. Ask around friends and family for a personal recommendation and keep trying.

pompeygirl69r

No nothing was said about a deposit and the mortgage broker was a friend of a friend?!

Cannon_Fodder

Mother needs to seek professional advice to consider the council rules on 'deprivation of assets', before gifting such a large amount. Does she own/rent elsewhere?

Poor credit, non-standard construction - does he have a 25% deposit and perhaps £2-3k in fees, i.e. around £15k ?

Little to no chance, I suspect.

If, with professional advice, mother is right to make such a gift, ask her to sell it for market value and split the proceeds. Should avoid IHT, unless her estate is extensive. And stops the 'make a quick profit' brigade.

somethingcorporate

pompeygirl69r wrote: »

No nothing was said about a deposit and the mortgage broker was a friend of a friend?!

As CF states you'd still need a deposit and there is a whole world of hurt around deprivation of assets. I'd think long and hard about whether it is worth doing it.

Just out of interest, where is the mother going to live?

Fairdo_2

Forgive me for saying, but something doesn't seem to fit. Aurveyor employed by Abbey to carry out a valuation without reason, or they would get another valuer in. Abbey were traditionally more sympathetic to prefabricated properties, but many Lenders will now entertain them subject exclusively to valuers comments. However, there are many types of prefabricated constructions and Lenders have their own do's and don'ts lists.
It strikes me as the biggest problem with this case and likely the reason the valuer did not carry out the survey is because Abbey do not lend for Buy To Let purposes and s/he probably found this out when he visited the keyholder for access. Therefore, it looks like there was a communication breakdown somewhere.

The fact that this is family discounted purchase will also play a part, so it will be more complicated and I would suggest you seek advice from a Whole of Market Mortgage Broker who is confident they can research this specialist area and get your partner the best deal.

Sounds like you could do with someone with some gumption to do this for you rather than a broker that seems to have half listened to the requirements.

Good luck.

pompeygirl69r

My mother in law is selling to my other half for £45,00, she will then give him £15,000 to decorate house for tenants etc which he will pay back over time. She will use her money to live in privately rented accomodation.

I agree i think there was a lack of communication or just a random person the mortage man sent round to make it seem like the real thing.

My partner told him that although Abbey have checked his credit file no footprint was left which he thought was strange?! The mortgage man again said it should appear and the subject changed!!

somethingcorporate

Search the files yourself, they are £2 from each of the major providers.

I'd suggest going to a new broker.

I'd be wary of any deprivation of assets issues (whereby your MIL is deliberately depriving herself of assets to claim benefits etc) and there is no time limit on this. If she ever required care etc then the council could refuse to contribute on the basis that your MIL deliberately deprived herself of a a significant asset.

Tread with care - it's a minefield and the explosions may not happen for a looong time...

FraudBuster

pompeygirl69r wrote: »

No nothing was said about a deposit and the mortgage broker was a friend of a friend?!

Find a new broker.