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Buy to let query
gremlin
Posts: 1,189 Forumite
Hi all
Looking for some sensible advice. I think I know what we should do but looking for the reality really.
Status is that we have a property with equity of approw 60%.
We have arranged a BTL mortgage for the house we currently live in. Good chances of rental in this area with a approx 14% annual return.
We have also arranged a mortgage for another property to move in to - no chain so thought this was going to be a breeze.
Then two weeks ago we were gazumped by a cash buyer on our new house a week before completion
and are now left with a bit of a dilemma.
We have considered going ahead with the BTL morgage as even though its slightly higher than the mortgage we're paying atm after using a small amount to pay off a bank loan we will actually have a lower monthly outgoings. Putting the capital in the bank and keep looking for the next couple of months for a property.
This is really only a short term gamble as we dont want to have to re-apply for this mortgage (we've already had to apply twice due to purchases falling down) and all of the costs associated with it and worry about the effects of this on our credit files
My worry is how do we stand with the mortgage company by staying in the property for a couple of months while we look for another house?
The BTL mortgage is on an introductory rate for 1 year so we can change it after a year should everything not go to plan.
Also using this address to apply for another mortgage should we find a house. With it having a BTL mortgage on it would it be a flag to a potential lender that our home address would have a BTL mortgage currently on this proprty.
I understand that what I am suggesting is probably not by the terms of a BTL loan but I plan this to be a very short term issue.
Any advice would be appreciated.
Looking for some sensible advice. I think I know what we should do but looking for the reality really.
Status is that we have a property with equity of approw 60%.
We have arranged a BTL mortgage for the house we currently live in. Good chances of rental in this area with a approx 14% annual return.
We have also arranged a mortgage for another property to move in to - no chain so thought this was going to be a breeze.
Then two weeks ago we were gazumped by a cash buyer on our new house a week before completion
and are now left with a bit of a dilemma.We have considered going ahead with the BTL morgage as even though its slightly higher than the mortgage we're paying atm after using a small amount to pay off a bank loan we will actually have a lower monthly outgoings. Putting the capital in the bank and keep looking for the next couple of months for a property.
This is really only a short term gamble as we dont want to have to re-apply for this mortgage (we've already had to apply twice due to purchases falling down) and all of the costs associated with it and worry about the effects of this on our credit files
My worry is how do we stand with the mortgage company by staying in the property for a couple of months while we look for another house?
The BTL mortgage is on an introductory rate for 1 year so we can change it after a year should everything not go to plan.
Also using this address to apply for another mortgage should we find a house. With it having a BTL mortgage on it would it be a flag to a potential lender that our home address would have a BTL mortgage currently on this proprty.
I understand that what I am suggesting is probably not by the terms of a BTL loan but I plan this to be a very short term issue.
Any advice would be appreciated.
"Beauty is in the eye of the beholder and it may be necessary from time to time to give a stupid or misinformed beholder a black eye" - Miss Piggy
0
Comments
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If you complete on this without any alternative primary residence in place, you will have committed mortgage fraud - as the property is NOT to be let on completion, but will remain your private residence.
You would be best to see how long the mge offer stands for (usually 6 mths, although any unreserved mge product may be withdrawn within that time).
Hope this helps
Holly0
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