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Mortgage Query
ORIENTEXPRESS
Posts: 3 Newbie
Hey there, newbie here, don't hurt me!
I have a conundrum here.
We inherited a house which needs renovation. We plan to move in within the next three months and then rent out our current home. However we need to borrow approx. £60k. Our current property has enough equity in it to cover that but our bank won't allow us to do this because it means we will have to take out a homeowner mortgage and then pretty much immediately (within 3 months) effectively cancel this mortgage and take out a buy to let mortgage. They don't think its worthwhile for them.
We don't really want to secure any debt on the new property.
Is there a way around this at all please?
Thank you!
OE.
I have a conundrum here.
We inherited a house which needs renovation. We plan to move in within the next three months and then rent out our current home. However we need to borrow approx. £60k. Our current property has enough equity in it to cover that but our bank won't allow us to do this because it means we will have to take out a homeowner mortgage and then pretty much immediately (within 3 months) effectively cancel this mortgage and take out a buy to let mortgage. They don't think its worthwhile for them.
We don't really want to secure any debt on the new property.
Is there a way around this at all please?
Thank you!
OE.
0
Comments
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Secured loan?I 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
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ORIENTEXPRESS wrote: »Our current property has enough equity in it to cover that but our bank won't allow us to do this because it means we will have to take out a homeowner mortgage and then pretty much immediately (within 3 months) effectively cancel this mortgage and take out a buy to let mortgage.
More likely it's the purpose of the equity withdrawl that's the issue. Not the length of time.We don't really want to secure any debt on the new property.
Why not?0 -
Most lenders have a minimum term of 5 years - so it could well be that 3 months is an issue.Thrugelmir wrote: »More likely it's the purpose of the equity withdrawl that's the issue. Not the length of time.I 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 -
Thrugelmir wrote: »More likely it's the purpose of the equity withdrawl that's the issue. Not the length of time.
Why not?
A sense that this property has no ties, it is ours, the bank has no means to interfere or have any hold over it. Perhaps just a personal, emotional thing!
Cheers.0 -
If there was the possibility of a 'flexible' mortgage that could just be transferred from homeowner to buy-to-let status within a short timeframe then that would be ideal, most likely totally unrealistic a desire!0
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Have a broker assist you with this one.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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