Could Buy To Let Turn Our Fortunes Around

roswell

bon wrote: »

First thing I did to help raise money for build is tart credit cards. Interest free ends in June. I dare not approach another company to use interest free balance transfers. I've been refused to many times on unsecured loans this week Which I thought might make up deficit for selling A and getting rid of secured loans.

Why are you hell bent on borrowing more money when you have already said you cant borrow more money !! ?

Why confuse things by getting a BTL mortgage when you cant even get a mortgage on the 2 properties you already have .

You say you cant get unsecured borrowing then your going to Tart credit cards ... good luck

.. this sounds like a load of trollip to me.

bon_3

In reply to Roswell; I'm not hell bent on borrowing more money. I was originally going to remortgage on moving in to new build but was let down by my mortgage company(by there own admission). The rest of my debts would be payed off by proceeds of house sale. I already have the credit cards. No point in saying it sounds like it's a load of trollop without looking at the facts properly.
Indeed epz is right it does seem mental. Fudgeing figures is not as easy as it sounds because there is so much information available to finance companies.
This is why buy to let could be helpful. They are not so concerned with income etc. but with the rentable value of your property(so I believe). I have conceded from advice on buy to let forum that I should'nt introduce another property but I could buy to let the new build and so relieve the majority of debt on the house I want to sell. I think a good broker might be able to help.
I was told by someone yesterday " I have 15 mortgages worth over a million pounds and I sleep at night." I,ll just have to see.

jamesd

Talk to your own bank. It seems that your state after selling property A should make a low value mortgage on property B over 25 years feasible.

If they won't accept that, consider renting a smaller property C and letting out B as BTL to repay the loan on B. Once loan is repaid you can move from rental to B. The BTL loan on B won't depend on your own income.

Prepare a one page listing of debts and property valuations so they can see at a quick read what your whole financial state is. Include everything.

Doing this may involve a mortgage broker with more experience of commercial and BTL loans. You're not really in pure residential loan territory here.

You may well need a bridging loan secured on B to pay off all of the debts prior to taking out the BTL mortgage on B (and repaying the bridging loan with it). Bridging loans are one way to get out of the "they won't let me do this" place to a simplified situation.

bon_3

Thankyou jamesd. Talked to bank they are out of the question. There is no loan on B as such The loan is on A but B was built on land with A so B and A are registered on the same title. If I split A and B,might this release B from the legal charge on A at the land registry?
Why would I need a bridging loan? Could I just pay of other debts with BTL mortgage?
Would I really have to rent a small property C? Could I not just move in to B anyway?

bon_3

Would a BTL lender be that interested in other debts?

silvercar

I thought you couldn't get a mortgage on property B because of its self build certificate? If this is true I wonder if it would be possible to get a BTL mortgage, the self build certificate would be the same.

Was puzzling through your problem last night, I'm still thinking there must be a solution because on paper you own two homes whose total value is less than your total debts, so really you should be winning!

Have you thought about selling property B? You may not be able to get a mortgage on it, but maybe someone with good credit and a reasonable deposit can get a mortgage from a different lender.

The other option may be to rent out property A or property B; this will give you some extra income, will it be enough to bridge the gap between your current income and what you need?

jamesd

A bridging loan might remove the block of the creditors wanting to be fully paid out of the proceeds of the sale of A.

Renting C might work if you're unable to obtain a residential mortgage on B because of your income. In this case you could rent a smaller place C and go BTL on B with the rental income on B financing the mortgage.

A BTL lender would be interested in the other debts on A because they are partly secured on the land on which B is built. The creditors are likely to be unwilling to lose the part of their security represented by that land.

bon_3

silvercar et.al .- Don't know about BTL and warranty. Maybe more scope.
Selling property B capital gains. I was leaving landscaping and building conservatory until sold A to save time and preserve cost. Would't look so desirable to sell, wheras property A has been prepped throughout for selling.
Most of money from renting one and living in other would be swallowed up in taxes and loss of tax credits.
jamesd et. al. - Bridging loan. How repay after sale of house? Probably high interest? etc. Maybe I could BTL B subject getting rid of charge from BTL. If I am still in A then I could sell A and move into B afterwards or something. I'll mull over it whilst I finish fitting kitchen units in B (just in case BTL is option).
Thanks again

PosterBoy77

I would suggest that you contact SELF BUILD ZONE to find out which lenders recognise their insurance. You could then narrow down which lenders to speak to about getting a mortgage for the new property. The solicitor will be able to sort out splitting the plot into two and registering the new site. It should also be possible to sort out the different mortgage charges if you sell the older property and clear all debts associated with it.

bon_3

mikael- I did contact BUILD ZONE. Please read #12 of this thread as I gave them the list.