Question for the Brokers

Pearl1

Hi

At present I'm in the process of remortgaging my sole residence and also buying 2 buy to let's. I've told my broker (a family friend) that the remortgage needs to be processed first, once that's under way then process the buy to let's. Problem I have now is the broker has processed the buy to let first by mistake and gone off on holiday for 4 weeks!!! My question is with all the affordability checks, would there be any problems in doing the buy to let's first? Would it affect the sole residence mortgage or the amount that could be borrowed?
Any info would be great

amnblog

Why does it make a difference what order you submit the applications in?

Perhaps you want to be sure about the deposit funds before you spend on BTL applications.?

ACG

It sounds like your overly concerned and your broker is not putting you in the picture.

Unless you are using HTB, having a BTL should not make a huge difference one way or the other.

There is nothing to stop you having all 3 going through at the same time but not completing on the BTLs until after your residential mortgage has completed - other than it being 3 credit checks in quick succession.

Pearl1

The remortgage is the important one as I've borrowed a bit extra to pay for home improvements, didn't want to be in a position where the buy to let's went through first then found I couldn't get the funds on the remortgage. To me it seems a bit weird that they'll pull you up on little things like having gym membership, but a BTL of 200k doesn't matter??!!

kingstreet

Pearl1 wrote: »

To me it seems a bit weird that they'll pull you up on little things like having gym membership, but a BTL of 200k doesn't matter??!!

That depends on the chosen lender.

Some will assume the BTL has no tenant and expect you to be able to pay both mortgages, while others are happy to accept a BTL is self-financing if the rent exceeds the monthly mortgage interest by a particular amount.

Same with the gym membership. Many lenders do not analyse your outgoings tot he nth degree. They use national stats, asking only about any significant personal outgoings, such as childcare, credit etc.

What a broker does is applies his knowledge of a lender's criteria and lending policy to your circumstances to ensure you fit.

tvfreek

I'm not sure I 100% agree with everything written previously and I am a broker.

Point 1, the order of the applications is important, two recent btl searches before a residential will decrease credit score

Point 2, All BTL mortgages must be self funding - each lender has its own tolerance level but beyond this your personal income must be able to support the void periods

Point 3, As a consequence, the btl's may well affect how the residential lender views your application.

I hope this helps..