NRAM morgage query

sarah179

Have a nram nortgage fixed until may 2012. 90% ltv, I am now thinking of remortgaging due to erc waiver? Are there any good deals out there? I Bought property to live in, rented it out due to market situation. My mortgage is in consent to let basis as was not BTL morgage. When I remortgage does it have to be buy to let? Any help appreciated!!!

GMS

If you are renting the property then you would need a Buy to Let mortgage. There are no 90% BTL mortgages in the market at present so stick to what you have and try to overpay as much as you can.

Once you have the LTV down to 85% at the most then you may have options.

_Andy_

Answer was given on your original thread too

holly_hobby

Notwithstanding the LTV issue, all depends on what interest rate you are currently being charged, and what you will be charged when you come out of your fixed rate.

BTL interest rates are typically higher than straight residential deals (due to commerical reasons), and you may find that even when you come out of your fixed rate, NRAM SVR may still be less than any BTL product available.

If you can get to 85% LTV - Kensington will consider (25k min income) - current 2 yr fixed @ 5.99% - so that will give you an idea if its worth even considering a move.

Dont forget to factor into any move possible legal fees, mge product fees, and exit fees (if ERC wavier vanishes when fixed rate ends).

Hope this helps

Holly

sarah179

I find it quite frustrating as I didnt buy property as a BTL, I was an accidental landlord ie Couldnt sell property. In may 2012 I go on SVR so repayments will reduce a lot but was looking at my options dut to erc waiver.

holly_hobby

Unfortunately those are the facts, if the property is to be let following completion than its a BTL mge you need, you will not qualify for a residential mge, as it is no longer a private residential property, but in effect a source of income (business).

In fact before the introduction of the marketing term "BTL" mortgages (with criteria amended to open the market to the masses & therefore shift more properties which prompted the property boom), they were actually termed "semi-commerical" mortgages, with much more stringent lending criteria (i.e you had to be a professional landlord). Sure other "oldies" on here will remember those days too ...

Anyway I digress, the only other option I can think of if you were an accidental landlord and don't want to contiue being one is to sell the property - hopefully the market in your area may be a little more bouyant now and you find it easier to sell.

Hope this helps

Holly

jp1982

Hi Sarah,

I am applying for consent to let with NRAM (have sent off the forms but waiting a response). I don't meet the conditions set out (ie owe less than 70% or can achieve 120% of monthly repayment in rent) so was just wandering from your experience how receptive they were to granting you consent. Did you have to satisfy certain criteria for them to grant this or was the process easy?
Thank you in advance!