Tricky mortgage, any advice appreciated!

roarke80

Hi, I've been spending the last month calling broker after broker and am unable to find the type of mortgage I need.

I am on a Tier 1 visa with more than 1 year left, and am looking for a buy to let mortgage through a limited company. I am a first time buyer and first time landlord in the UK.

The only brokers I have left have either rejected my choice of property (high rise apartment built 2 years ago), or wants to charge me large upfront broker fees.

Can anyone point me in the right direction as to whether I might be able to find a willing lender or suitable broker? I didn't approach the usual banks as I'm pretty sure they won't lend to limited companies, I'm not sure who else is left. Am i not looking hard enough or would this be an impossible mortgage to get?

Thanks in advance!

Conrad

You're being unrealistic and need to temper your wish list.

For a start forget the ltd company thang, no way is that going to be a goer unless you already have a substantial portfolio.

The high rise issue is also pretty much a deal killer. Why restrict yourself so much? Many of these buildings will be torn down, so just walk away and buy something more sensible.

The other issues you mention should be doable.
Any decent broker expects clients to demonstrate their commitment with some sort of fee up - front otherwise you're sending out the message you aren't truly committed and serious. If I book a holiday I expect to pay something up front to demonstrate I'm not a time vampire.

All the best

roarke80

Thanks for your reply.

I understand mine is a difficult case which is why I'm having such trouble getting a mortgage. I'm afraid I have no option other than to buy through a limited company.

To be frank I'm not sure I understand why the high rise building is an issue. We are looking at a luxury apartment with stunning views of the city, not an old council block. Is it true that most lenders will not consider this?

I'm happy to pay broker fees including upfront fees. The only thing is that the broker I'm speaking to wants £750 just to tell me the interest rate and amount I can borrow. His fee will amount to £2.5k if the mortgage is offered.

I'm just checking what other options I might have, if any at all.

kingstreet

Most lenders don't like newbuild flats. For newbuild you can normally also include two years old.

Most lenders don't like high-rise flats.

Most lenders don't like borrowers without ILR.

Most lenders don't like FTB BTL cases.

Most lenders don't like lending to limited companies.

All in all, I'd be mighty surprised if you could find a single lender willing to do all that. As Conrad says, you need to compromise on your shopping list.

On the broker fee issue, I'd think twice about going hunting for unicorns on my time. If you wanted me to undertake that quest, I'd want to make sure it was you carrying the risk of not finding one, not me. This could end up taking up hours which could be used much more lucratively.

Conrad

roarke80 wrote: »

Thanks for your reply.

I understand mine is a difficult case which is why I'm having such trouble getting a mortgage. I'm afraid I have no option other than to buy through a limited company.

To be frank I'm not sure I understand why the high rise building is an issue. We are looking at a luxury apartment with stunning views of the city, not an old council block. Is it true that most lenders will not consider this?

I'm happy to pay broker fees including upfront fees. The only thing is that the broker I'm speaking to wants £750 just to tell me the interest rate and amount I can borrow. His fee will amount to £2.5k if the mortgage is offered.

I'm just checking what other options I might have, if any at all.

Ok if it's a genuinely sought after and durable property there could be options. The classic 1960's concrete high rise tends to suffer all sorts of durability issues in our cold damp climate.

Why does it need to be via a Ltd company? Can only think of 3 lenders that could even consider this and at least1 of them will charge you very high rates.

I'd want £300 up front if it were me if I'm honest! Clients always think these are readily answerable questions, but one question leads to another and so on, and before you know it 5 hours have elapsed.

ACG

The ltd company and high rise is causing the issue.
You can get a Mortgage being on a tier 1 visa.

Why not sit down with a broker and discuss what you CAN get and see if you can get that to fit in with what you need. Rather than having so many issues that make a situation difficult.

I think as the other brokers have said, a fee upfront for this would have to be charged. The reason being is its such a difficult task, i could end up spending days on this and get nowhere - thats my time i could be spending on other clients. Im someone who usually charges a fee upon application (not upfront) but i wouldnt be prepared to do that in this instance due to how complicated it is, i would want to ensure im compensated for my time.

roarke80

Thanks for your replies.

I do have legitimate reasons for buying through a limited company. First of all, I have restrictions on owning private property personally as I bought a government flat in Singapore a few years back, but I am able to invest through a limited company. Secondly, I am planning to use the money I have accumulated in my limited company for the 25% deposit and it would not be tax efficient for me to withdraw that money directly.

I'm very much more interested in a high rise flat with excellent views as that's the kind of property I personally prefer to live in and believe would be easier to rent out.

kingstreet, I understand the need to pay for the initial work done by a broker but I think £750 is a little high. Am I wrong or is this actually a reasonable rate?

Let_Us_See

Agree £750 upfront for research is a little excessive. £300 would cover the cost of checking all possibilities as it isn't going to be easy.

Thrugelmir

roarke80 wrote: »

and am looking for a buy to let mortgage through a limited company.

From a lenders perspective not worth the additional risk.