Funky BTL type mortgage needed

chriscc_2

Hi all. I'm in an interesting situation and need some advice.

I own one principal residence worth £800k with a remaining mortgage of £200k.

I have taken a voluntary break from work so I suppose my current status is unemployed although I am managing a few non-income-earning investments (not claiming any benefits).

I want to downsize my property and move to a flat worth about £250k (without mortgage). I have found the ideal home to buy but unfortunately don't yet have a buyer for my current property.

In an ideal world I would take out a BTL mortgage of about £300k, use that to repay my £200k mortage, and combine the £100k change with about £150k of other savings to buy the new place. Then I could keep the £300k BTL loan ticking over while I find a buyer at which point I'd redeem the BTL loan. You'd think with a 300/800 LTV that a BTL lender would be comfortable lending, but I have no income so don't qualify for most deals.

So my question is: does anyone know of BTL deals with (i) little or no early repayment fees; and (ii) no requirement for salaried income. The LTV and rental cover of interest is very comfortable. Or does anyone have any ideas of funky BTL-type short term mortgage products that don't cost the earth?!

Many thanks and sorry for the rambling post...

somethingcorporate

Try a broker.

GMS

There are lenders who do not require a minimum income for Buy to Let but having none may be a bridge too far.

Simplest option would be a bridging loan although this can be expensive and you need to be able to sell within the agreed timescales to avoid further charges.

Speak to a broker to see if there is a solution

Dave_Ham

I concur with GMS.

There will be a solution given the risk involved to a bank, although will be at fair rather than headline rates and may incur a few costs.

My gut says it will still be significantly cheaper than bridging finance..

Find a decent broker and have a free chat to see what the solutions are..

Credit score will be crucial, any adverse will make this hard work so best to check Experian and Equifax..

Good luck

thermos

funk·y
adj. funk·i·er, funk·i·est
Slang : Characterized by originality and modishness; unconventional: "a bizarre, funky [hotel ] dressed up as a ship, with mock portholes and mirrored ceilings over the beds" "A funky buy-to let type mortgage"