First time buy to let - light refurb mortgage suggested

Posie1972

So, spoke to nice mortgage man today, unfortunately it sounds like now the valuer has put his report into TMW there'll be no going back and its going to be a refurb mortgage or nothing - 5.74% fixed for 2 years 2.5% arrangement fee. Which isn't the end of the world. I suppose. Anyway, he's put a new spin on things, has suggested to me that maybe I would be better off holding back some of the £40K deposit I have, get the maximum TMW would lend me on the refurb mortgage, which would be approximately £45K (instead of the original £30K) and using the remaining money left over for possibly using as a deposit for buying another house in the future......food for thought!

kingstreet

holly_hobby wrote: »

some are bluntly direct, some more "fluffier" than others (that'll be us girlies & the lovely Kings.)

Note to self. Beef-up online persona and rid image of potential "fluffiness" failings.

Believe me H, sometimes I struggle to keep my trap shut at some of the very, very daft questions we're asked on here.

I keep repeating "play it with a straight bat, play it with a straight bat" like a mantra to remind myself not to toast some of the muppets.

holly_hobby

kingstreet wrote: »

Note to self. Beef-up online persona and rid image of potential "fluffiness" failings.

Nooooo don't do that, real men wear pink you know .... although I admit not with matching heels !!

Dont go off to Vinny Jones island, stay with us in the Danny La Roux fluffy lounge ... its more fun ! (ok, if that doesn't leave you running for man island nothing will !!)

From a very fluffy
'
Holly :A x

The_J

kingstreet wrote: »

I keep repeating "play it with a straight bat, play it with a straight bat" like a mantra to remind myself not to toast some of the muppets.

Hahaha I will give this a go. All I see is KP "switch hit switch hit"

Craig101

holly_hobby wrote: »

The light refurb has been cited as appropriate, in reference to general updating and the kitchen being by the sounds (very, very) dated, ie not fully fitted out as modern kitchens are ..... which in its current state will obviously have a negative impact on the max achieveable rental income and/or its speedy letting to the market in general.

What TMW criteria is saying are that they will pre-works lend max 70% LTV (65% FTB) of the current value, but post works (and subject of course to a re-inspection (& fee) and sufficient supporting rental income assessment),you may apply to increase your borrowings to 70%(65%) of the REVISED post-refub valuation.

Of course, if the cost of the kitchen etc, is already taken account of in your budget, and you don't need or want to recoup the cost out of the property itself, then of course you don't HAVE to apply for any re-inspection etc and can leave things as they are - although moving to a mainstream product asap (o/s of any ERP of course, or at a rate good enough to negate the impact of the penalty) would obviously be advantageous to reduce mge interest - albeit mortgage interest at any rate is a permitted deduction from your BTL HMRC returns (subject to HMRC regs & any future issues arising re max cap raising and permitted interest deductions - which is for another day !).

Hope this helps ... good luck .. !

Holly

Sorry to resurrect an old post. I am looking at buying an investment property which needs a fair amount of work doing to it, and seems to fit in with the light refurb mortgage from TMW.

I am in a similar position to the OP in that I have funds in place to pay for the refurb, and do not require a retainer. This thread seems to suggest that if I dont have to apply for re-inspection, and can leave things as they are.

I'm hoping someone can clarify the following:

If you do not apply for reinspection, and choose to leave things as they are, what will happen? Presumably TMW will want to make sure that works have been completed, and that the property is now lettable? Or will they not care as long as the mortgage repayments are being made?

What are the consequences of not completing the works within the stipulated 3 months? Or does the 3 month rule effectively not matter if you have no retainer in place? I am a bit of a novice, and wanted to take my time over the refurb to make sure it is done properly.

Any help would be appreciated

thanks
Craig