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Who to approach
pevonia
Posts: 41 Forumite
My current property is rented out to family member, which I make no profit on. Who would you suggest approaching for mortgage on a property based on 35k deposit leaving mortgage of 200k
My yearly salary is 38,500 with plenty of overtime on top of this.
Many thanks for any help offered.
My yearly salary is 38,500 with plenty of overtime on top of this.
Many thanks for any help offered.
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Comments
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Approach a broker.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Are you talking about another property, or remortgaging the one with a familt member in?I am a mortgage adviser.You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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When you say no profit. Are you taking into account the fact that only the interest element of your mortgage is tax deductible. The capital isn't.0
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Thrugelmir wrote: »When you say no profit. Are you taking into account the fact that only the interest element of your mortgage is tax deductible. The capital isn't.
Profit or not is irrelevant at the moment, as it is either a regulated BTL which is practically impossible or they are referring to purchasing another property, which looks very tight in terms of income.I am a mortgage adviser.You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
The rent needs to be 25% more than the mortgage for the lender to grant consent to let, well thats what my lender required along with at least 25% equity.
If you change the current mortgage to a BTL then you will need 25% equity anyway.
Your looking to borrow over 5 times your salary.
Maybe you should buy some lottery tickets after engaging a broker!"Dream World" by The B Sharps....describes a lot of the posts in the Loans and Mortgage sections !!!0 -
The rent needs to usually be 125% of the mortgage based on an interest only mortgage at around 5-6%... slightly different.
But this is not a BTL, its a regulated btl which is based on the persons income rather than rent.
Whether this is possible to place or not will come down to the finer details but i would be very surprised if you have any options other than to leave it where it is.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
But this is not a BTL, its a regulated btl which is based on the persons income rather than rent.
Is it? or are they talking about purchasing another new property?
Not sure from the original post, hence why I asked?I am a mortgage adviser.You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Good point.
Reading it again I have made a bit of an assumption.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Hi guys, yes purchase another property. I certainly can afford it or I would not put myself at risk.
Take your advice and approach a broker.
Are there any better than others or all provide same service.0
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