mortgage for buy to let/ first time buyer

stranger12

Hi All,

I want to apply for mortgage and here is my situation

I own 40% of a flat in Manchester and need to buy the other60. My salary is within the requirements for what I need to borrow (27K) and Ineed to borrow 85K

My credit score is around 960 so good-excellent according toExperian but of course that will change depending on the criteria of thelender.

I spoke to my bank and they mentioned they can not offer mea loan only because I let the property otherwise they could almost do it

Basically I never had a mortgage before and am a first timebuyer but because I relocated I had to rent the place and give the 60% of the rentto the share holder.

My bank says in order to get a mortgage needed for this flatknown as buy to let, I should have had a mortgage before and be over 25 andhave a full time job . I have the full time job but not over 25 and never hadmortgage.

My plan is to try other places as their policy could bedifferent and at the same time speak to brokers. I was thinking of London andcountry as they are free broker and charge the lender .



Any advise on what to do and whom to contact will be greatlyappreciated

stranger12

any one with advise? it seems my question is probably tough

GMS

Do the terms and conditions of the lease allow the flat to be rented out? Who owns the other share?

How old are you?

You need to speak to a broker. May not be a straightforward transaction.

stranger12

yes the contract requires permission from the landlord which i have in order to rent it


24

any broker that you specifically suggest ?

any suggestion on what is the best course of action ?

thanks

GMS

I am not allowed to recommend a broker, forum rules.

You need to find one who will get on the phone to lenders and discuss the deal first rather than apply in principle only to get it declined later on.

How long have you owned your share for?

stranger12

around 7 month.
not sure which broker might do that as they may say yes we will but just apply and damage my credit score.

are you allowed to pm me the name of brokers recommended?


overall do u see my situation as buy to let mortgage?
It is funny that when i tell the lender that I own 40% share equity then they say we can not do it and then i say why, they mention is it because i can not have two mortgages but then i mentioned that there are no mortgages on it . i have bought it using cash and i own 40% and the other own 60% as simple as that then they ask about the rent which i explain that i take the rent and pay 60% of it to the other party but then i think this makes the whole thing complex

GMS

I can't recommend whether on forum or PM.

Which lenders have you approached? There are Buy to Let lenders not available direct to consumer, broker only ones.

If you intend to let the property then it is a Buy to Let you need. Whether there is one available is the question. It would need some investigation

ACG

Who owns the other 60%.

This is where the problem lies. If you can get the person who owns the other 60% to agree to a mortgage then you might be ok, otherwise i think you will struggle.

To find a broker just go on google, type in mortgage advisor (then the town/city you live in) call around a few until you speak to one your happy with.

kingstreet

I agree with GMS.

There are lenders who;-

- won't do BTLs to under 25s
- won't do BTLs to those who don't own their own residence
- only do BTLs to those with a minimum income of £30k or £35k+
- require rental income well in excess of mortgage interest

and who to approach needs careful, professional planning.

Although this is technically a remortgage of an unencumbered BTL to fund the purchase of the remaining equity, you're probably falling foul of the above issues if you are trying to get this mortgage on the high street. I presume the mortgage is needed to buy out the other part-owner so you will become 100% owner?

Seek a recommendation from friends and relatives. Failing that, you can look for a list of local brokers on https://www.unbiased.co.uk, switching off the "website/email" only option as this shows a full list, not just the paid-for adverts.

stranger12

ACG wrote: »

Who owns the other 60%.

This is where the problem lies. If you can get the person who owns the other 60% to agree to a mortgage then you might be ok, otherwise i think you will struggle.

To find a broker just go on google, type in mortgage advisor (then the town/city you live in) call around a few until you speak to one your happy with.

well the other 60% is going to be bought using the mortgage and he is happy to sell his 60% share


@ Kingstreet
"Although this is technically a remortgage of an unencumbered BTL to fund the purchase of the remaining equit"

The flat is currently under no mortgage the seller or my parter in share quiry own the 60% so do i thus it is matter of paying him his portion, will this not be a new buy to let mortgage?


btw I have a credit balance of 4k and loan of 8k, will they cause problem ??

kingstreet

stranger12 wrote: »

The flat is currently under no mortgage the seller or my parter in share quiry own the 60% so do i thus it is matter of paying him his portion, will this not be a new buy to let mortgage?

Yes. It will. The "unencumbered" simply means there's no existing mortgage. It's a remortgage because you already own some of it, but it's for the purchase of equity which is normally the use for a purchase mortgage, not a remortgage.

It's impossible to say what will, or won't cause problems. Seek out the broker as recommended and provide all the requested information to make the likelihood of finding you the best deal, first time, all the greater.