Further Advance soon after Product switch

greg5050

My lender is Halifax.
My mortgage o/s balance was approx 64% LTV. :A

:T I want to buy another property as a Buy to Let, and wanted to use some of the equity from my current property by taking out "Further Advance" with my current lender itself. :T

So I paid in the lump sum into my mortgage and brought it down to little less than 60% LTV (I was on my lender's Standard Variable Rate then).:beer:

Then I applied for a product switch with the same lender for a low 2 year fixed rate. This was completed one week ago. I did this so I can fix a low rate for the next 2 years.:money::money:

My question now is how long do I need to wait before I can apply for the Further Advance with the same lender. I intend to take out the maximum possible which is 20% of the property value in my scenario (60% on mortgage+20% further advance) ? :eek::eek:

ACG

I think you need to go a bit easy on the pictures. It reminds me of homers first website:
https://www.jbwp.com/wp-content/uploads/2011/05/2011-05-01-Homer-Web-Page.jpg

Have a look on your mortgage offer but I think its usually 6 months.

Thrugelmir

You may declined on the grounds of the purpose of the equity withdrawl. In addition to which the BTL lender may also not like the source of the deposit if you manage to clear the first hurdle.

Leveraging with debt is a game of the past as far as many lenders are concerned.

greg5050

ACG wrote: »

I think you need to go a bit easy on the pictures. It reminds me of homers first website:

Have a look on your mortgage offer but I think its usually 6 months.

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Hahaa, sure will go easy on the images, noted how 'catchy' it was to the eyes only after I posted it.

Checked out Halifax website and they have this sentence :
"Additional borrowing applications will not be permitted within 6 months of completion of the original mortgage."

So trying to understand what "Original mortgage" means ? - I first took out mortgage more than 3 years ago with Halifax, all I have done now is switch from one product to another of their mortgage product, they themselves are calling it as 'product switch'.

It would be great if you can share your thoughts on this point please.

Goldiegirl

The original mortgage is the date the mortgage started - in your case 3 years ago.


You've just done a product transfer, it's still the same mortgage, not a new one,


So you can apply for a further advance now. Although I'm not sure what stance they will take on you recently making a part repayment and now wanting a further advance.


You'll just have to make an appointment with them and see what they say

greg5050

Goldiegirl wrote: »

The original mortgage is the date the mortgage started - in your case 3 years ago.


You've just done a product transfer, it's still the same mortgage, not a new one,


So you can apply for a further advance now. Although I'm not sure what stance they will take on you recently making a part repayment and now wanting a further advance.


You'll just have to make an appointment with them and see what they say

Thanks for your comments, certainly a very valid point - looks like they most likely will pick up on it and question my motive doing the prepayment. I guess I will just state the facts as it is then and see what happens. :mad:

Another poster commented that my reason for further advance may not be valid - can someone clarify if further advance for "Property Investment" is not allowed ?