convert to BTL to buy new property?

holly_hobby

To be honest you are best using a broker for both your BTL and your residential applications

Particularly BTL wise they will open up a larger selection of lenders and deals than you may be able to source as a direct app.

They will also be familiar with the most acceptable lenders for your resi app.

I know you've been shaken a bit, but the adviser you have seen is not representative of the majority of advisers whom are knowledgable and proficient, without the need to resort to any incitement of fraud ! (there are a couple of brokers on here who have helped fellow posters ...

Holly

kingstreet

vic, if you give an idea of where you are, you may get a recommendation or two from others on here.

The regular brokers on here are from Stafford, Merseyside, Essex, Oxfordshire, Manchester and I dare say I've forgotten a few of the others as they don't show where they are from.

vic11

All sound advice, thanks! My brain is boggling a little here but I don't think the maths for buying the new place adds up as the rent on the property (which is a bit low, but we didn't want to be greedy) is only £1350pcm. The main positive objective is to secure this new place, so if I've missed anything obvious (I know bridging loans are a terrible idea) then please tell me!

One more qu: have noted the advice about coming clean with the Halifax but am still frankly frightened re how it'll go. Have seen lots of advice on other posts about how to be persuasive with mortgagees re needing CTL which I realise isn't quite eth same thing. Should I plead ignorance and indecision (which is about right) or is the result going to be the same whatever ie big rebuke and possible backdated charge .. or not, depending on whoever I get on the phone's unpredictable exercise of discretion?

Thanks!

vic11

Sorry, my computer seems to load messages in chunks! I'm in Brighton .. New flat is £315K; may have to offer up to £325. We have regular income between us of £55K ..

Thanks!

kingstreet

You don't need to talk to Halifax if you are going to go the LTB remortgage route. You only need to talk to Halifax if you decide on their CTL option instead.

£1,350 means a remortgage of £216,000, leaving you £66k to put towards the deposit on the new purchase, and to cover the remortgage and purchase costs.

Once you add your £15k, that means £80k ish, less £15k for costs, so says £60k deposit. That's near enough 20%, so you should be fine.

You then need a lender for the purchase which will ignore the let property/mortgage in the background as "self-financing) and won't "tax" your incomes with the cost of the old mortgage when calculating affordability of the new one.

At £315k, with £60k deposit, you are going to need £255k mortgage, or 4,6x income. There are a handful of lenders who will offer that, subject to any other credit commitments, dependents etc., so it will be tight but achievable. Is your credit history good?

holly_hobby

Well I would only declare its already/prev been let if asked a direct question ... if not, then don't volunteer.

OR

If you want to avoid any of that caper ... simply remortgage onto a BTL - job done, Halifax none the wiser and no pens.

Hope this helps

H x

holly_hobby

I don't currently advise the public, but Dave Ham is London based, (so not a zillion miles from you) and has some rave reviews from fellow forumites (hope he doesn't mind my mentioning him) !

Hope this helps

Holly

vic11

Hi, yes our credit history is fine - we do have 2 small kids tho. Earned household income is £55K pa like I said but my partner also earns commission averaging £10K pa(ish) last 5 years.

Am starting to calm down and feel as if there's a plan, thank you!!

Thrugelmir

vic11 wrote: »

we put it on the market 2 months ago but no luck. Now we've found somewhere we’re desperate to buy for £315K but have to move fast as there’s loads of interest in it.

Are you just continuing to be impulsive in your decision making. 2 months isn't very long in terms of marketing a property at that price level. Why not reduce the price to attract interest if you wish to sell it.

vic11

Hi there, I agree that 2 months isn't long & that reducing the price is the way to sell. .. But happily I have another plan, thanks to the input above - thanks guys!