Capital Raising Mortgage on a Bug to Let Property - options?

macaulays

Afternoon All,

I own a property that I purchased around five years ago using an equity release on my parents home that is currently let out and I live elsewhere in the country in a house that I lease. The rental property has no mortgage secured against it but I pay the payment on the equity release that my parents arranged on their property at the time of purchase. I would like ideally to be able to move this borrowing off my parents 'books' and into a regular mortgage of my own as they would like to make some changes of their own own in the coming years that having this extra mortgage amount 'officially' against their property is not helpful for. I therefore would like to try and identify if there are any lenders who would permit borrowing in my own name in these circumstances so that I can then pay off the amount still secured against my parents house which is c. 39k. The value of the rental property is around 70k.

Following a brief but ultimately unfruitful discussion with a chain broker they suggested I am looking for a 'debt consolidation buy to let remortgage' - does this sound right? Does anyone know of lenders that would offer such a product to someone that doesn't live in their own, owned home? I would also, where possible, prefer to deal directly with the lender based on my poor experience with the few brokers I contacted (I.e. most either didn't reply, immediately recommended a set of inappropriate products that I pointed out I wasn't eligible for despite me having given them that info to start with or suggesting products with lenders that I knew myself didn't provide consolidation by products but the broker hadn't checked) but I appreciate a lot of btl is broker only.

Any suggestions of lenders who might consider the above scenario and whether the product type noted above is what I'm asking for would be most appreciated!

An alternative route I had considered, if possible, was whether the situation would be more 'normal' from a banks perspective if I effectively 'sold' a share of the rental property to my parents so they then owned the asset and held the related debt, and then at a later point 'bought' the share back off them by raising against my share of the property. Would that be any less unusual from a lenders perspective?

Any thoughts greatly appreciated!

minimike2

This really is not a case for you to be dealing directly with lenders your self on - You have a number of issues, the two main ones being - Debt consol on a BTL and you aren't an owner-occupier.

You will NEED a mortgage broker for this. Your mistake was the brokers you approached. Not saying that all brokers who work for chains are bad, but they have high turn over and inexperience will get the better of some - You need someone experienced. Time to ask about for recommendations.

macaulays

Thanks minimike, I had assumed a broker would be best as it is a slightly unusual arrangement however after contacting both a small local broker and the big chains I seemed to be having a hard time getting any useful info out of either! As you say, poss just bad luck. Any thoughts from anyone that may have identified lenders in the last that might be able to work with the above would be most appreciated though so I can perhaps bring those to the attention of whichever broker I manage to eek a reply out of...

Thanks,

S