Precise mortgage offer

Super_Star

Hi,

We have a BTL mortgage offer from Precise for 175k.

My brother would like to buy my property which we let out. Due to this I would:-

• My mortgage offer to be reduced to 110k
• I was previously on 5 yars fixed term. This to be reduced to 2 years fixed term. Interest is lower but abit high product fee.

This has now been forwarded on to Precise for underwriter to check. Would there likely to be any issues?

Thanks

Super_Star

Hi, I am sure this is not the first time this has came up.

Any replies please?

Thanks

David_White

Can you clarify your situation a bit...

Are we talking about two different properties here, the one with an offer and the one you're selling to your brother?

Is the offer for a purchase or re-mortgage?

Are you wanting to reduce your offer because of receiving a cash lump sum having sold a property to your brother?

Super_Star

Sorry - I didn't make it clear.

Yes there are 2 properties. The property I am purchasing I have a mortgage offer with Precise. 2md property I am saling it to my brother and he will pay me cash lum sum.

Previously the Precise offer was 175k. As I am saling my property to my brother I will not need the full 175k, I will only need 110k with property value of 275k.

Plus previous deal was 5 years fixed - I would like to change that to 2 years fixed.

David_White

Shouldn't be too much of an issue, I would expect them to want to see proof of additional deposit though.

5yr down to 2yr is likely to be possible as well due to improved affordability.

Super_Star

David,

Thanks for replying back.

They have asked how full desposit monies are being raised and documentary proof.

Deposit amount is 164k.

I can show my ISA and current accounts statement which has 37k
Sale of property 120k. At the moment I have no evidence of it but I have sent an email to my solicitor asking for a letter. I am not sure if they will accept without a letter? as this is the largest funds.
Family Gift (from nephew) 15k. A letter from family member confirming a gift and I do not need to repay this monies back to them and they will have no involvement in the property whatsover.

This total makes it to £172000 which is more than deposit required,.

I also have around 3k in saparate account which was the rent payments I have received. This has not taken in to account.

Do you think this be would ok?

Thanks again.

David_White

As long as you can evidence every penny of your deposit and it matches their criteria there's no reason for Precise to have a problem.

Super_Star

On precise website criteria it says they accept family deposits.

It does not mention it has to be parents.

I am hoping they will accept 15k gift deposit letter from nephew.

Super_Star

I bank with First Direct. I have just downloaded my 3 months statements from 11th December to 11th March 2017. Current account looks ok - It has 2 credits of £1000 each. This is from my father. He owed this money to me and paid me back. This is just a small amount comparing to large amount of evidence I am providing. Please do let me know if they likely to answer further questions relating to these deposits.

My ISA statement for 3 months just shows monthly interest and has 22k in it.

Gift letter signed by nephew is all ready.

Just waiting for a letter from solicitor confirming he is dealing with sale of the property in which I will receive 120k. Hopefully I will get this by tomorrow.

David_White

You may struggle with the gift coming from your Nephew as that is not considered immediate family by Precise.

It'll be down to the underwriters discretion.

Super_Star

David thanks for your replies.

What aboy 2 gift letters - 8k from my brother and 7k from my sister in law? These 2 counts as immediate family memebers.