going to loose house we want to buy i think

Biggles77

I think we are going to loose the house we have set our hearts on. the buyers pulled out of the sale of existing house and we cant seem to get a remortgage (to release deposit) on our existing house. Natwest have said No as we live in a repaired PRC house but next doors is not repaired and have been told halifax will do it but i dont know if they would as mortgage on new house is with them. valuations are not an issue as we have 86K of equity in our current house just since credit crunch everyone seems to be saying we dont lend on this we dont lend on that. we are ready to exchange on new house just need remortgage for deposit. very sad.

kingstreet

I thought you were looking for a let to buy deal, so you could raise the deposit for the onward purchase?

Halifax doesn't offer BTL products via brokers, LBG has a specialist broker-only provider, BM Solutions.

Biggles77

we were but i dont think we can get a lender to do our house. i cannot believe no one will lend. I know of the halifax but my thought was they wont as the new mortgage on the new house is with them. would they say no too much borrowed?

kingstreet

Depends on your income/outgoings and the surveyor's assessment of the rental income prospects.

Biggles77

rent been told will be 700-725/pcm, i earn 34k and would need 120K morgtage, existing mortgage 86K and valuation is 170K. new mortgage on new house would be 750pcm.

kingstreet

You should consider "interest only" for LTB mortgage, as only interest is an allowable business expense for tax purposes. I don't know Halifax requirement, but if you use;-

rent = 125% of monthly mortgage interest assuming 6% interest rate and have a maximum loan based on the lower of that, or 75% of the property value, you should be fine if Halifax will accept the property.

FWIW if Halifax will accept it for LTB, BMS should accept it too, if you want the broker to handle it.

You might want to seek out the Colleys (LBG in-house) surveyor for the area and ask them their opinion before you embark on this plan;-

http://www.colleys.co.uk/customer/contact-us/find-your-local-surveyor/

Biggles77

did look at birmingham midshires but oddly they said my credit score not high enough even thought never had problem elsewhere. and no missed payments on anything etc ever.