BTL mortgage

dimbo61

Some lenders wont lend on EX LA properties.

seven-day-weekend

Update:

Agh! Been to our bank today (LTSB) and they say our income is not nearly enough for a BTL mortgage However they are more than willing to lend on our existing house, but only £39950 based on income.

Is this usual, or is it just our bank?

angelsmomma

I would say its your bank. I couldn't get a mortgage from them either but had no problems with TMW

seven-day-weekend

Ok, thanks.... we know a mortgage broker, will see what he can do.

mumps

seven-day-weekend wrote: »

Ok, thanks.... we know a mortgage broker, will see what he can do.

We got ours from Nat West. My husband is a couple of years older and I am a couple of years younger than your example so in the same ballpark. Only difference is I am still working, only part-time but earning £30k, they know I am planning on retiring next year well I was but might be another year or two. As far as I remember they were more interested in rental yield than my salary. We also got an offer from Halifax. Hope that helps.

Wh05apk

BTL lenders often have a minimum income of £25-35k, some do not, forget the high street for this you will need a broker.

However, if you are able to raise the mortgage on a residential basis, the interest charged will probably be 2/3 of a btl mortgage, tax wise you will still be able to offset any interest charged against profits, so it could be worth exploring this option further?

holly_hobby

Yep the issue is your incomes are too low for the lenders whom have the 25k earnings rule

Additionally, ex LA properties are an acquired taste for BTL lenders (ie many don't like them !)

So you can see your field is becoming narrower as we go.

If you are serious, you could seek a remortage on your primary residence, pch the BTL for cash and you have sovled 2 probs in one. The only issue with this, are you ages, which whilst not a great issue on BTL mortgages, are on residential borrowing - so the restrictive term may be an issue for you (or not as the case may be).

WH0. is correct regarding the offsetting of mge interest, but this is only the interest element in association with the funds used to pch the BTL property.

HMRC will want to see a clear audit trail between the 2, which won't be hard to do, and as ex-landlords there is no need to lecture on submitting of annual returns, deductable costs, etc.. etc ..

Hope this helps ... time for an hour with a whole of market broker I feel !

Holly x

seven-day-weekend

http://www.rightmove.co.uk/property-for-sale/property-24113766.html

We're looking at this on Saturday.....it's literally two minutes walk from the city centre, (right on the ring road) and the area around it, which has been derelict factories for years, is being re-developed with a Sainsbury's, a shopping centre and housing. Hopefully this will cause the housing prices to go up in that area.

We think all this makes it a really good location for a BTL.

We are aware of the potential pitfalls of ex LA apartments/flats/maisonettes so if we are interested we are going to make sure we know a) the projected major works (if any) on the property for the next few years, b) the annual service charge and ground rent and c) confirm the length of the lease which we believe to be around 100 years, before making an offer./ Then we will offer around £40k.