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New BTL mortgage required - Money laundering!
Leigh-Anne_60
Posts: 521 Forumite
Hi
I recently bought another property. Due to complexities of the vendor (was on shared ownership) I didn't go down the mortgage route to fund it. It was funded by borrowing funds on my existing mortgage, savings and borrowing from family.
I now (on paper) own this property outright, and to pay back the borrowing to family members I was going to take out a BTL mortgage for £40k (value £160K). I approached my current lender (C&G/Lloyds) but they have said they cant do anything until 6 months have passed due to money laundering rules?!?
Now it wont be a hardship to wait 6 months, but would rather get them paid back now, so my question is - is this an internal process by C&G/Lloyds or is it industry standard?
If it makes any difference - the £40k is all traceable to source - ie it was transferred via bank transfer from savings accs etc
I recently bought another property. Due to complexities of the vendor (was on shared ownership) I didn't go down the mortgage route to fund it. It was funded by borrowing funds on my existing mortgage, savings and borrowing from family.
I now (on paper) own this property outright, and to pay back the borrowing to family members I was going to take out a BTL mortgage for £40k (value £160K). I approached my current lender (C&G/Lloyds) but they have said they cant do anything until 6 months have passed due to money laundering rules?!?
Now it wont be a hardship to wait 6 months, but would rather get them paid back now, so my question is - is this an internal process by C&G/Lloyds or is it industry standard?
If it makes any difference - the £40k is all traceable to source - ie it was transferred via bank transfer from savings accs etc
0
Comments
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Not all lenders insist on the '6 month rule', but many do.
Broker will certainly require a fee at this size of mortgage - but should place it easily.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
but they have said they cant do anything until 6 months have passed due to money laundering rules?!?
... their internal rules. Although not uncommon with some others.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0 -
Hi
Thanks for your replies.
How much would a brokers fee be approx?I'm sure that I would probably get a better rate through a broker than Lloyds/C&G.
Thanks0 -
Brokers vary with their charges but will be upfront with you in declaring what they will charge.
Personally I would 'expect' them to be in the region of £250 - £500 for this.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Leigh-Anne_60 wrote: »Hi
Thanks for your replies.
How much would a brokers fee be approx?I'm sure that I would probably get a better rate through a broker than Lloyds/C&G.
Thanks
No value in rate without an offer.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 -
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At £250 many brokers (and certainly any sensible ones) will be happy to let you do so.
On BTLs you will only have access to approx 50% of the market as a direct customer.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0 -
Hi
That's interesting, the last time I had any interest in the mortgage industry lenders were pulling all the broker only deals, but that was residential deals.... and quite a few years ago
LA0 -
Post MMR has seen a huge changeLeigh-Anne_60 wrote: »Hi
That's interesting, the last time I had any interest in the mortgage industry lenders were pulling all the broker only deals, but that was residential deals.... and quite a few years ago
LAI 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 -
Oh yes, remember reading about MMR and the complexities that it brings - but I was talking way back before that... think I last remortgaged around 2006/7 and the broker market was in uproar just shortly after this (Although will be ever grateful to a great broker I got off MSE who got me a .58 above base lifetime tracker)
Just out of interest does the MMR changes only apply to new mortgages as didn't see any impact on y additional borrowing? Might be worthwhile waiting for the 6 month period to elapse (completed 19 Nov) and stick with C&G as branch mortgage advisor knows our in/outs0
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