Property Auction / Mortgage Dilemma !!

herbiesjp

shrewd_saver wrote:

Wow thanks, loads to go on there.

Current mortgages are NWB & RBS. Can we not buy to let the too existing properties with the current lenders up to say 95% of their value and take the new £407k mortgage for the auction property?

This would give us about £570, plus shares and cash would get us to £600k, hopefully enough to win the auction??

I'd rather not try to move it all to NWB if possible cos RBS mtge has fixed rate and would involve penalties. It's going to mean some considerable outlay in the short term but would be worth it if we pull it off... and we'll have to or I think we'll be bankrupt!!!

Oh I'm going grey already !!!!

If you were going to change the first two properties to BTL, you would not be able to go as high as 95% as BTLs do not lend that high

The maximum mortgage you can get will be dictated, not by you personal income, but instead by the expected rental incoem on those two properties

It may be likely that you could raise most of the funds via the two BTLs in this case, and then have a minimal mortgage on the new property

HTH

MortgageMamma

Whether you can borrow the max possible on your two existing properties depends on two things.

1. affordability, and thats the first thing that should be looked at
2. Projected rental income
3. Will the lenders grant you consent to let and approve additional borrowing simultaneously

I do not have the answers to this for you, this is something that you need to have investigated

Regarding the mortgage with penalties, you can still borrow more from that particular lender by asking for a further advance, which means you will receive additional funds on top of your mortgage, which will be a seperate amount in a seperate account at a seperate rate - this will avoid early repayment charges. you should select the product for this further advance as carefully as possible as when you come to remortgage this property it would be wise not to be tied into either of these deals so as to turn it into one big loan again - consider a rate with no tie in's or the Standard Variable Rate if there's not long to run on the original deal

Hope that helps a little

Are you still keen or have my revelations damped you somewhat?

herbiesjp

shrewd_saver wrote:

Can you tell me how i can find a good broker experienced in this sort of thing? Any websites I can search?

Can family or friends give you any recommendations?

silvercar

you could get a bridging loan while you sort all the finances out. Expect to pay about 1% as an arrangement fee. Whereas bridging loans are in theory short term, many people find that they need longer to sort out their finances than first thought and end up keeping them for months - check that you can afford this.

shrewd_saver

herbiesjp wrote:

If you were going to change the first two properties to BTL, you would not be able to go as high as 95% as BTLs do not lend that high

The maximum mortgage you can get will be dictated, not by you personal income, but instead by the expected rental incoem on those two properties

It may be likely that you could raise most of the funds via the two BTLs in this case, and then have a minimal mortgage on the new property

HTH

have had a quick look around the internet and seems BTL will only offerm 85% but LTB can raise up to 95%. Either way though, there's only £160k - £210k equity in the existing properties so we'll still need to raise over £400k on the new house. Oh how the head does spin !!!!:rotfl:

shrewd_saver

MortgageMamma wrote:

Whether you can borrow the max possible on your two existing properties depends on two things.

1. affordability, and thats the first thing that should be looked at
2. Projected rental income
3. Will the lenders grant you consent to let and approve additional borrowing simultaneously

I do not have the answers to this for you, this is something that you need to have investigated

Regarding the mortgage with penalties, you can still borrow more from that particular lender by asking for a further advance, which means you will receive additional funds on top of your mortgage, which will be a seperate amount in a seperate account at a seperate rate - this will avoid early repayment charges. you should select the product for this further advance as carefully as possible as when you come to remortgage this property it would be wise not to be tied into either of these deals so as to turn it into one big loan again - consider a rate with no tie in's or the Standard Variable Rate if there's not long to run on the original deal

Hope that helps a little

Are you still keen or have my revelations damped you somewhat?

We spent hours this morning using Martin's budget (thanks Martin) to check we could afford everything and based on the new mortgage we'd still have over £600k left at the end of each month to pay all the things you never think of counting. This would be without using savings which we'd use to pay int on existing mortgages til properties sold but I don't think NWB will look at it like that.

Would prefer not to LTB existing properties as it'll mean more fees initially but if needs must....

MortgageMamma

Be careful with bridging as its complex and expensive and again requires professional advice.

shrewd_saver

MortgageMamma wrote:

Be careful with bridging as its complex and expensive and again requires professional advice.

We thought about bridging (for about 30 seconds whilst the first online quote loaded) and quickly discarded as impractical. Thanks MM

MortgageMamma

The LTB could be a temporary arrangement until you have completed on new loan then you could sell your other two properties once any early redemption penalties are over

Don't get confused between let to buy and buy to let, its easily done

You need proper qualified advice! This is a lot of money to play around with

shrewd_saver

should we be loking for something specific in an adviser/broker? As you say this is a lot of money and we don't have any time for mistakes.

thanks for everything so far....