Baffled about which rate to go with for Buy to Let!

chris163

Ok Leon - they seem good. Thanks ever soo much for your efforts.

My only concern is how tough it will be for me to get a mortgage on my own flat/house?

I want a place for around the £180,000 mark in 3-4 months time.

I will have £30-40k to put in.

This means in principal, I would be financing £140-150k and im on 35k a year.

Would this be feasible on my earnings and from your experience, would it count against me still having the buy to let?

If not - I would stick with a tracker, because the likelyhood is I want to hang onto the property

Leon_W

Interestingly. The rate you have been quoted of 4.74% with CHL seems to be a non starter as according to my sourcing software, that mortgage is not available to first time buyers. You'll need to check.

Leon_W

You should be fine Chris.

The fact that you have a (buy to let) mortgage, and it is self financing, will HELP you get a residential mortgage. As long as you pay it mind !. It will show lenders that you can handle credit.

To buy a £180,000 property with a £40,000 deposit leaves a mortgage of £140,000. On your salary, and presuming no hideous debts then this is exactly 4x your income. Can't see a problem with that. Most High Street lenders will lend there or therabouts.

chris163

Thats very useful to know.

I wasnt sure that if a mortgage company saw me with a £100k loan around my kneck for another property, they would loan me less....

but i still felt it is worth buying a buy to let as prices seem to be going mad, demand is high and even if i only keep this particular property for the short term, I could probably make a 10-15% return on it over 6 months due to the shortage of them (very popular development and only 12 built).

Oh - as ive said you have been soo helpful!!

Any idea what a 'soft' credit search is?

Leon_W

A soft credit search is where someone has a look at your file but it is not recorded.

Some lenders do this and some don't. Birmingham Midshires for instance do a soft credit search for an agreement in principle so it doesn't show as a search. This gets converted to a HARD search when a full mortgage app is submitted.

Unfortunately, most lenders still conduct hard searches which impact your credit rating as the more searches you have the lower your score. Great eh !

chris163

Yea superb lol

I have a guy who is completing a 'soft' search for me. He was very helpful on the phone, professional and not pushy.

He said that before looking for the best rates, it is generally better to conduct a soft search first - then they establish which mortgage is best for you. He said this would not impact my score.

Is this generally the case? he was from one of the big companies I contacted and seemed to know his stuff - but....then again...im a complete novice!

Leon_W

As long as you're not being charged a broker fee then it all seems reasonable to me.

Take as much advice from as many people as you can is the best advice I can give anyone (for free). Everybody has a slightly different take on things and it is ultimately YOU that has to make the decision. I know what you mean about pushy sales types so go with the company/broker that you feel most comfortable with and makes the most sense !

Best of luck and hope it works out for you.

Regards

Leon

laurarose

Hi

I'm no expert but have you tried London & Country brokers. You prob know all about them but if not look at the mortgages article on this site.

Good luck

Laura

chris163

Leon,

May I say you are a valuable asset to this site and I will be recommending you for the £50 prize for the month which i read about.

I will keep you informed about how I get on!

Laurarose - no I didnt know about L&C - thanks very much for the tip!

laurarose

You're welcome!

We have just remortgaged and found L&C very helpful, they have reduced our mortgage repayments by over £200.00 per month.

Good luck with it.

Laura