BTL mortgage on an unencumbered property

NW_London

Hi guys,

Hoping someone can kindly help with my situation. I currently have an unencumbered property which I've just let out this week. I want to take out a buy to let mortgage on it to raise funds to purchase another property and pay off existing mortgage on another property. I've spoken to one "leading" mortgage broker company that hasn't been able to find me a single lender willing to lend under those circumstances. Surely there must be someone out there or is this mortgage broker right?

Some background info: I meet all financial lending criteria for a BTL mortgage and I already have an existing BTL mortgage and a residential mortgage of my own.

Any help appreciated.

Foxy-Stoat_3

Go to the broker who arranged your current BTL mortgage.

NW_London

I did It's the same broker I used previously saying they can't find a lender this time.

Leon_W

Seems a bit weird.


How long have you owned the property ?

silvercar

Is there some issue that makes this property difficult to mortgage?

NW_London

Leon_W wrote: »

Seems a bit weird.


How long have you owned the property ?

A month or so, previously it belonged to my parents. However, at no point in my mortgage consultation was I asked how long I'd owned the property for.

Foxy-Stoat_3

You need to have owed the property for at least 6 months.

NW_London

silvercar wrote: »

Is there some issue that makes this property difficult to mortgage?

Nothing at all, it's a regular house on a regular road in a regular town.

It did have a residential mortgage on it up until late last year.

kingstreet

A lot of lenders won't lend until you've owned it six months, but if the broker didn't know you've only owned it a month it's difficult to see how he could have used that as the reason.

I suggest another broker to see if there's an obvious reason.

Under 75%? Rent = 125% of monthly mortgage interest at 6%?

Any adverse credit history in the last few years?

NW_London

Foxy-Stoat wrote: »

You need to have owed the property for at least 6 months.

kingstreet wrote: »

A lot of lenders won't lend until you've owned it six months, but if the broker didn't know you've only owned it a month it's difficult to see how he could have used that as the reason.

I suggest another broker to see if there's an obvious reason.

Under 75%? Rent = 125% of monthly mortgage interest at 6%?

Any adverse credit history in the last few years?

I wasn't aware of the 6 month rule, are there lenders that are willing to see past this?

LTV is 60% and rent is 122% of monthly mortgage interest at 6%.

amnblog

The 6 months rule is not a feature for all Lenders.