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agreement in principle...

edited 30 November -1 at 1:00AM in Mortgages & Endowments
7 replies 747 views
Grimbo82Grimbo82 Forumite
20 Posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
Hi I am a newbie on here looking for advice, please can anyone help?

We have quite a tricky situation so here goes:
  • I own flat and am currently going through legal process of staircasing to 100% and then plan to get CTL from Halifax, not sure how long this will take.
  • My wife will be remortagaing from a residential to a BTL
  • we then plan to buy a house £155k will have 10% deposit.
We both have good salaries (combined income £70,000) and mortgage advisor has told us remortgage, CTL and own mortgage should be no problem. We have seen house we like but would like to know:

Can we get an AIP now from a lender that assumes the BTL and CTL will take place?
If not is it advisable to put an offer in on a house without an AIP?

We expect starcasing to take 4-6 weeks but don't want to risk losing a house we like. Any advice much apprecited.

Replies

  • kingstreetkingstreet Forumite
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    Will the housing association give you permission to sub-let?

    They normally refuse.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • GMSGMS Forumite
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    How are you funding the staircasing? If with a mortgage it is unlikely they would grant CTL straight away.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Grimbo82Grimbo82 Forumite
    20 Posts
    Hi guys,

    Other shared ownership party is house builder not a housing association. My solicitor has checked the lease and says i can let the property once i own 100%. I am paying for staricasing in cash and not borrowing any money.
  • kingstreetkingstreet Forumite
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    Ok. So mortgage-wise, you want 90% with two let properties/mortgages in the background?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Grimbo82Grimbo82 Forumite
    20 Posts
    That's correct. Thr house builder is not interested in purchasing or nominating the flat to another purchaser so they are happy for me to buy out my remaining shares which i have cash for. My lender, the same name as a west yorkshire town has said that when staircasing is complete they would be happy to give consent to let. We don't know whether we could get AIP or not and are unsure whether to put an offer in before getting an AIP.
  • kingstreetkingstreet Forumite
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    I don't know of a lender which will ignore two let properties with mortgages. Saying which, if you don't handle such cases regularly, you can get out of touch quite quickly. Have you got enough income to justify affordability of all three mortgages assuming both let properties were untenanted?

    One of the others might have an idea. This is probably a job for a good independent or whole market broker.

    At 90% this is going to require some work and I'd counsel against an offer until you're sure of being able to fund the purchase.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • Grimbo82Grimbo82 Forumite
    20 Posts
    Thanks kingstreet.

    I'll bear that in mind, think that is the idea i had in imnd anyway about putting an offer. We are dealing with an advisor now who doesn't seem to think it should be a problem as we have good affordability, even with properties untennanted, so we will see what happens.

    Thanks,

    grimbo82
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