Buy to Let Mortgage..only option?

chocolateflake

Hi,

I posted the other day regarding me not being able to take my One account with me when I move, due to my retirement/ill health.

I have today spoken to a mortgage broker who has assured me the only mortgage I can get because of my circumstances, is a buy to let. He says he has exhausted all options and I will not be able to get a mortgage with 98% of lenders.

He has given me details of one of the mortgage lenders on this but the interest rates are quite high being 4.30% fixed until Oct 2013.

The fees for this lender are £1000 and the broker also wants £950 on top of this?

I think this is pretty extortionate, or is this the norm?

I dont have much choice and need this mortgage asap but I havnt agreed to it yet.

What do you think?

Thanks in advance

chocolateflake

that this is an interest only mortgage but I have been advised I can change this to a repayment whenever I like.

Does this sound correct?

GavB79

Have not read your other thread, but are you not concerned that 98% of lenders will not lend to you? Does this not make you think twice?

payless

are you intending to live in property.

If so - Using a B2L for an alternative self cert !!!!!!!!!!!!!!!!!!
not clever

chocolateflake

GavB79 wrote: »

Have not read your other thread, but are you not concerned that 98% of lenders will not lend to you? Does this not make you think twice?

Thanks but no... Its only for a couple of years

chocolateflake

payless wrote: »

are you intending to live in property.

If so - Using a B2L for an alternative self cert !!!!!!!!!!!!!!!!!!
not clever

No sorry, I didnt explain myself very well. I am not going to be living there personally, I wasnt aware I 'had' to have this kind of mortgage for renting purposes, but clearly i do )

Thrugelmir

chocolateflake wrote: »

He has given me details of one of the mortgage lenders on this but the interest rates are quite high being 4.30% fixed until Oct 2013.

Not particular high. In time rates will rise above this level.

payless

https://forums.moneysavingexpert.com/discussion/comment/45941731#Comment_45941731

sorrry but implies you were planning to live in your new purchase....

holly_hobby

As already stated by payless - BTL is not an "alternative" to self cert.

As stated by Payless - your orig post also indicated to myself, that we are actually discussing the requirement of a residential mortgage, which due to income issues your broker is having difficulty in placing.

If we are looking at BTL as a backdoor route to S/C - used/advised by (some) brokers/advisers as a solution to income issues, its not as clear cut as one might think !

Lenders are now more aware of such creative "advice" - and can and do make various perodic checks to establish the validity of the mge arrangement - the obvious one being that your main address for statements etc will be the property you are apparently "letting" (unless of couse you provide an "alternative" address as your new main abode).

But then again, the above won't apply to you, if you don't intend to live there ....

So assuming from as you say you will be letting the property ....

You are concerned about the level of fees ...

Someone you can go directly to, is Halifax, who currently have a fee free BTL remortgage offer - have noted a link below for some guidance ..

Select which rates fit your LTV and take it from there (check their criteria suits your circs, take note evidence of AST reqd) ...

Current forum advisers with access to mge sourcing software such as mortgage brain, will also be able to give you a wider range of any other current fee free btl remortgage deals, as should your own broker !! (of course if you yourself source and go direct to Halifax or another lender, you will evade a broker fee for their services (but by the same token lose the benefit of their experience/guidance - and possible intermediary exclusive deals).

If you want to do a bit of legwork yourself, here is Halifax BTL link -
http://www.halifax.co.uk/mortgages/remortgage-fixed-60-75LTV.asp

Hope this helps ...

Holly

chocolateflake

Yes, just reading some information on here regarding brokers and that if they state there is a charge, then pass them by. But from reading other sites, there does seem to be 'some' kind of charge, I just thought 950 was quite high.

holly_hobby

A broker charging a fee should not be seen as a negative (esp in a non-standard situation) - remember you are paying for the brokers experience/ professional competency, and for their guidance in what can be a confusing and sometimes complex maze of products, meeting lender criteria etc, and assitance in getting the mge through to completion.

If however, its a straight forward application, you prefer a high st lender, and to manage the process yourself (in not using a broker & to avoid a poss fee) - there is of course nothing preventing you in applying directly to mge lenders - and holding your breath

NB - Not all brokers charge the applicant a fee (they will instead be happy to instead accept from the lender a mge procuration fee & poss commission on any FS/general products sold, in place of a fee for their provision of advice).

Hope this helps & good luck

Holly