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Remove Name or Buy to Let?
willLeeds
Posts: 126 Forumite
Hi Guys,
My self a friend bought a house together 4 years ago, and recently both decided to move out from the house and in with our girl friends.
I decided to buy his half of the house and have paid him the equity.
I have a poor credit rating and although earn a good wage, have three defaults, two to fall off next year, one the year after.
I then surprisingly got a promotion at work which included relocating to Leeds.
By next may we have agreed i will remove him from the mortgage, into just my name.
I know i could apply for a bad credit mortgage, but at a current rate of 2.5% im not in a rush.
Do i change the name of the mortgage first? or change to a buy to let? or do both at the same time?
Im currently with Nationwide but im not sure they will allow just my self to be on the mortgage with my defaults.
I know im going to have to do both at some time, im just not sure the best order.
My self a friend bought a house together 4 years ago, and recently both decided to move out from the house and in with our girl friends.
I decided to buy his half of the house and have paid him the equity.
I have a poor credit rating and although earn a good wage, have three defaults, two to fall off next year, one the year after.
I then surprisingly got a promotion at work which included relocating to Leeds.
By next may we have agreed i will remove him from the mortgage, into just my name.
I know i could apply for a bad credit mortgage, but at a current rate of 2.5% im not in a rush.
Do i change the name of the mortgage first? or change to a buy to let? or do both at the same time?
Im currently with Nationwide but im not sure they will allow just my self to be on the mortgage with my defaults.
I know im going to have to do both at some time, im just not sure the best order.
0
Comments
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Have you paid him half the equity without taking his name off the deeds/mortgage?0
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Is the NW aware that you are currently letting the property?0
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If you seek consent to let, instead of changing to a buy to let mge, there shouldn't be any further CRA check - as you aren't increasing your borrowing.
Removing your pal will involve an affordability assessment that you can service the mge on your own - so I may apply for this after consent to let, given that you'll also be able to demonstrate that the mge is self supported by rental income.
Check out what mge rate NW will offer on CTL (usually svr & circa 1.5% loading), compared to what you can obtain on an adverse BTL remortgage (which may be thin on the ground !).
If its currently let, be careful what you divulge or they may refuse on principal given that you will be currently in breach of your mge t&cs !
Your defaults will drop off (following 6th anniversary), when you will have much more freedom of movement re your BTL financing - so sitting tight with NW until then may be the way to go.
Hope this helps
Holly0
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