New Mortgage + Old Mortgage ending- London

Taansen

I have a 5 year 3.99 fixed from Britannia which will end in 4-5 months.

250k had borrowed 75%;property has appreciated by approx 100k.I will put this on rent and seek consent to let from Britannia..The rent will be 15% more than my installment.

I am looking to buy another one to stay and offer has been accepted .


One call I need to take is should I release the equity in current house and increase the deposit amount from 25 to 40?? or keep the equity for house extension?? Or ??

real question is broker or direct??

Both of us salaried...with proof of incomes and all and excellent credit report..

Looking for experiences/recommendation for fixed mortgage with quick turn around- Chelsea/TSB/Nationwide? 25% deposit - 380k purchase value??

Currently getting that as best and in that order.

Now do I need broker or do direct??

And am not worried about broker commission but speed of transaction obviously..

dimbo61

This should be so EASY NOT!!!!
Speak to a Broker or wait for a Long time to sort if ever

kingstreet

You won't get more money from your existing lender if requesting consent to let. You may get consent, but if you need to borrow more, you will usually have to remortgage on a let to buy basis.

To do this, you will be able to remortgage on the lower of;-

upto 75% of the value of the property
or
the mortgage amount which corresponds with 125% of the monthly mortgage interest, assuming a rate of about 6% per annum.

You will need to check the lender you plan to use for the onward purchase will accept the loan to value of the purchase and the affordability for the proposition as a whole. As an example, one of the lenders you mention will not offer more than 85% for the purchase of a property where there's going to be a let in the background and it won't ignore the mortgage for the let until you can evidence the payment of rent.

Broker job for me. If you need speed and accuracy, life will be far easier for you.

Taansen

Thanks,how to get touch with you?

can you please PM me your website or??

kingstreet

Taansen wrote: »

Thanks,how to get touch with you?

can you please PM me your website or??

I just noticed where you are and we don't operate in London.

You'll need someone down there, or a non-face to face service.

amnblog

Kingstreet is right Taansen.


This is all about timing, and establishing the best of several ways forward - a broker is best placed to do this.