Another "Can I Get A Mortgage" Post!

hotyogabunny

Maybe I should ask: "Can I get the mortgage I need to acquire a £440k property"

It will be no exaggeration to say that this consumes 90% of my waking consciousness so thanks in advance for any advice!

£70k/a income self employed with 15 years certified accounts
£250k value property with 97k loan which I've had for 13 years
£60k savings
Desired property value £440k

Current property would be moved to a LTB & new domestic mortgage would be taken on. :j

Thanks again in advance; I trawl this board every day without exception & have learned so much. By my sums it's possible but I like to hear it from those who know considerably more than I! :beer:

Your thoughts? :mad:

kingstreet

What's the projected rental income for the let to buy?

What's the net profit for the last two tax years?

Any credit problems?

Any credit commitments? How much paid each month?

Childcare costs? Maintenance?

TBH it's probably just easier to suggest you give this information and the rest of it to a broker and let them do this for you.

hotyogabunny

Hi Kingstreet thanks for the supersonic response!

Projected rental = £1200/month
Net profit is £70k
Immaculate credit history not one missed or late payment in 20 years
No loans, children & minimal outgoings of £1k/month mortgage (repayment mortgage with 11 years remaining)

I am awaiting a reply from a mortgage advisor as we speak but I am eager to know asap!

kingstreet

If the rent is confirmed by a surveyor, you could do a LTB remortgage of £187,500, 75% of the value of the property. That would leave you £90k toward the deposit for the new purchase, plus your savings of £60k, around £150k, less fees etc.

Let's say you put down £140k. That leaves you needing a mortgage of £300k, which on £70k net profit is 4.28x income, which should be no problem to many lenders, if the mortgage term is reasonable, 15 years or more.

Look for a lender which will ignore the let property/mortgage in the background - but watch the likes of Nationwide who will want evidence of the first month's rent and a copy of the AST before they will consider an application.

ACG

Is this in any way linked to this:
https://forums.moneysavingexpert.com/discussion/4737120 ?

kingstreet

I sincerely hope the OP is not trying to pull a fast one!

The FCA is alive to those with non-provable incomes using BTL as a way to buy a residential property by the back-door and lenders are being told to carry out extra checks they are not telling us about.

hotyogabunny

kingstreet wrote: »

If the rent is confirmed by a surveyor, you could do a LTB remortgage of £187,500, 75% of the value of the property. That would leave you £90k toward the deposit for the new purchase, plus your savings of £60k, around £150k, less fees etc.

Let's say you put down £140k. That leaves you needing a mortgage of £300k, which on £70k net profit is 4.28x income, which should be no problem to many lenders, if the mortgage term is reasonable, 15 years or more.

Look for a lender which will ignore the let property/mortgage in the background - but watch the likes of Nationwide who will want evidence of the first month's rent and a copy of the AST before they will consider an application.

I love you! I realise this is all quite basic stuff for Mortgage Advisors but it's a real struggle to get my brain around this stuff! Thank you so much! :j Especially when it was what I wanted to hear! Thanks again! :A

hotyogabunny

kingstreet wrote: »

I sincerely hope the OP is not trying to pull a fast one!

The FCA is alive to those with non-provable incomes using BTL as a way to buy a residential property by the back-door and lenders are being told to carry out extra checks they are not telling us about.

I'd rather not but will if necessary!

I've got a shed load of provable income (ie, all of it)

I have a property which will easily move to a BTL mortgage so I can toddle off to my swanky 440k pad, leaving that to tick over nicely in the background! :T

hotyogabunny

ACG wrote: »

Is this in any way linked to this:
https://forums.moneysavingexpert.com/discussion/4737120 ?

Very much so!

I thought the property was more than I suspected :eek: so today is a very happy day (but not as happy as the day when the one I want gets put up for sale!)

Thank you for your contribution.

ACG

What happens if the lender finds out and calls in the loan?

We see all the time people with residential mortgages being let out and the lender telling them to apply for consent to let or a buy to let otherwise they will call in the loan - you could end up homeless?

hotyogabunny

ACG wrote: »

What happens if the lender finds out and calls in the loan?

I want a DOMESTIC loan for the big place & switch my current domestic mortgage to a BTL whilst releasing equity that I've built up over the past decade or so; why would they want to call in the domestic loan on a domestic property? Have I missed something here?! :mad:

ACG wrote:

We see all the time people with residential mortgages being let out and the lender telling them to apply for consent to let or a buy to let otherwise they will call in the loan - you could end up homeless?

Which is why I wanted to know how to do it the right way! :A