Oil Worker with let to buy query

Superted87

HI guys,

So the story so far -

Spent 10 years (16yrs to 26yrs) in the UK Navy. Bought a house 8 years ago in Oxfordshire for £165000, with a mortgage of £145000. My pay was approx £36,000 GBP Gross Pa. I got permission to rent the house out from Natwest, got tennants in and I happily rent it out now. Mortgage is £740, rent is £750. Tax return for this house is completed up to date and declared.

Outstanding mortgage is £129000 with 19yrs left to run.

I have been faultless, and have immaculate credit history with council tax, low value credit card balances and debit card usage. Not on black mark, or negative anything.

I quit the Navy 18 months ago. Started working for an Oil company 5 weeks in Angola, 5 weeks in UK. I am a full UK resident for tax and I now want to buy somewhere to live also in oxfordshire.

My salary now is £27000 GPa, with a fixed location coefficient of +30% paid monthly to all moneys earned. When i work away i get £110 per day bonus which is also subject to +30%.

Total earnings - £58000 +/- a few quid. Angola have an agreement with UK for tax and my company chip in so I have an £8800 per year tax liability . So Net take home is £49,000 GBP.

I currently Self assess with HMRC as an employee, I am a full time employee, not a contractor.

I will have my 2013/2014 tax return form confirming these figures next month.


Questions -

Am I now a 1st time buyer for legal sake?? I have a self funding LTB property and a recently signed tenancy agreement ??

Which companies will give me the best mortgage rates / largest amount ? I have £30K to play with for deposit, if I can get a remortgage on my LTB house then I can get another £20k out of my equity.


Cheers in advance, sorry for the long post but I'm in a funny situation with this one

xyz123

Superted87 wrote: »

HI guys,

So the story so far -

Spent 10 years (16yrs to 26yrs) in the UK Navy. Bought a house 8 years ago in Oxfordshire for £165000, with a mortgage of £145000. My pay was approx £36,000 GBP Gross Pa. I got permission to rent the house out from Natwest, got tennants in and I happily rent it out now. Mortgage is £740, rent is £750. Tax return for this house is completed up to date and declared.

Outstanding mortgage is £129000 with 19yrs left to run.

I have been faultless, and have immaculate credit history with council tax, low value credit card balances and debit card usage. Not on black mark, or negative anything.

I quit the Navy 18 months ago. Started working for an Oil company 5 weeks in Angola, 5 weeks in UK. I am a full UK resident for tax and I now want to buy somewhere to live also in oxfordshire.

My salary now is £27000 GPa, with a fixed location coefficient of +30% paid monthly to all moneys earned. When i work away i get £110 per day bonus which is also subject to +30%.

Total earnings - £58000 +/- a few quid. Angola have an agreement with UK for tax and my company chip in so I have an £8800 per year tax liability . So Net take home is £49,000 GBP.

I currently Self assess with HMRC as an employee, I am a full time employee, not a contractor.

I will have my 2013/2014 tax return form confirming these figures next month.


Questions -

Am I now a 1st time buyer for legal sake?? I have a self funding LTB property and a recently signed tenancy agreement ??

Which companies will give me the best mortgage rates / largest amount ? I have £30K to play with for deposit, if I can get a remortgage on my LTB house then I can get another £20k out of my equity.


Cheers in advance, sorry for the long post but I'm in a funny situation with this one

As far as I know u can't be first time buyer as you have already a house registered under ur name at land registr. Letting out reduces ur lliability but u can't be considered first time buyers. Imho

tvfreek

Yes thats correct you're not a FTB
However, from everything you've said you wont have a problem. Being resident for tax purposes will qualify you for every BTL lender.

The amount you can borrow is governed by what the surveyor think the property will let for on a monthly basis on an AST tenancy.

However, as an industry gudie up to 75%

The rent should cover the mortgage payment by 5% x 125%

For example 600pcm x 12 = £7,200 /5% = £144,000/125% = £115,200

I haven't added my signature so I should say.

I am a broker, this website has not verified this fact and therefore you need to take my word for it.

twohooter_2

tvfreek wrote: »

Yes thats correct you're not a FTB
However, from everything you've said you wont have a problem. Being resident for tax purposes will qualify you for every BTL lender.

The amount you can borrow is governed by what the surveyor think the property will let for on a monthly basis on an AST tenancy.

However, as an industry gudie up to 75%

The rent should cover the mortgage payment by 5% x 125%

For example 600pcm x 12 = £7,200 /5% = £144,000/125% = £115,200







I haven't added my signature so I should say.

I am a broker, this website has not verified this fact and therefore you need to take my word for it.

Doesn't the OP say he is wanting to buy somewhere to live in - not another BTL? Or am I mistaken?

amnblog

You are not a FTB.

You will waste an awful lot of time and potentially money going direct to lenders.

Engage a mortgage broker.

Superted87

HI guys,

thanks for the help so far, I will definitely be going to a broker.

Key points to clear up -

I am already a landlord, I have been for 4 yrs , I have an AST contract, a deposit holding scheme in place, rent agreement at more than the mortgage and a mortgage at 75% with permission to let already.

I was recently told by a BTL broker that I should take my permission to let letter, AST contract and mortgage statement to the bank and it would be classed as an existing BTL for the affordability /lending criteria.

I now want to get a new homeowners mortgage and live in the house. Technically it is my first home as I never really lived in my other house. So i guess I am not a BTL customer, I have kind of done it the other way round. Hopefully with nigh on 50K a year net and almost no outgoings I can definitely afford it!!

thanks again