Can someone tell me which lenders offer 95% mortgage...

stu2500

...with a let to buy in the background also?

I was told 2-3 lenders will consider this, and I am going through a broker when the time comes, but I wanted to know which ones do.

Many thanks.

LKRDN_Morgan

There's more than 2-3. Off the top of my head Halifax, Post Office, Santander, Natwest, Tesco and Virgin are who I know of. Our broker gave us quite a few options but those are just the ones I remember

stu2500

LKRDN_Morgan wrote: »

There's more than 2-3. Off the top of my head Halifax, Post Office, Santander, Natwest, Tesco and Virgin are who I know of. Our broker gave us quite a few options but those are just the ones I remember

Many thanks. And that is definitely with a let to buy mortgage in the background/running alongside the new residential mortgage?

ACG

Pretty sure not all of those will do 95% with another property in the background. Its been a while since I had an enquiry like this on my desk but I think I only found 2-3.

It is probably easier now however. When I did it, most 95% mortgages were through Help to Buy which specifically excluded second properties, but as that no longer exists in that format it would be down to lenders.

I doubt there will be too many options but I would be surprised if there were not more than 2-3 lenders now.

stu2500

ACG wrote: »

Pretty sure not all of those will do 95% with another property in the background. Its been a while since I had an enquiry like this on my desk but I think I only found 2-3.

It is probably easier now however. When I did it, most 95% mortgages were through Help to Buy which specifically excluded second properties, but as that no longer exists in that format it would be down to lenders.

I doubt there will be too many options but I would be surprised if there were not more than 2-3 lenders now.

Thanks. We're definitely using a broker due to the complicated circumstances and to get the best deal for our scenario, but I wanted to do a little research over the year before hand.

ACG

The last one I did was with a building society. I wont name them as their criteria states they only do it up to 90% however we managed to get them agree to 95%.

I think the one I did prior to that was with a different building society but that did fit criteria.

Sorry for the cryptic messaged but we (brokers) are not allowed to name lenders.

stu2500

ACG wrote: »

The last one I did was with a building society. I wont name them as their criteria states they only do it up to 90% however we managed to get them agree to 95%.

I think the one I did prior to that was with a different building society but that did fit criteria.

Sorry for the cryptic messaged but we (brokers) are not allowed to name lenders.

No worries, I understand the situation you're in re. being a broker. I've looked at a few intermediary sites on the internet and I think I have found some.

Also do the mortgage providers take the existing property mortgage payment from our affordability if we have an arranged tenant?

ACG

Hows this for sitting on the fence...some will, some wont. It is one of those things that need checking before applying.

stu2500

ACG wrote: »

Hows this for sitting on the fence...some will, some wont. It is one of those things that need checking before applying.

Thanks, nothing is ever straight forward. Many thanks for taking the time to answer my queries.

kingstreet

stu2500 wrote: »

No worries, I understand the situation you're in re. being a broker. I've looked at a few intermediary sites on the internet and I think I have found some.

Also do the mortgage providers take the existing property mortgage payment from our affordability if we have an arranged tenant?

Typically, a lender which will accept such a case will treat a let property in the background as self-financing providing it meets lenders chosen rent/interest payment profile.

If it doesn't, some or all of the mortgage payment might be removed from affordability or even worse, some lenders deduct the capital balance from what you can borrow, leaving you able to use only what is left for the residential purchase.

In addition, best case scenario, a lender will accept an estimate of the rental income from a letting agent, worst you have to provide three months bank statements showing rental income receipts. Obviously, in the case of the latter your case isn't wanted by that particular lender.

There is really too much for someone to brief you on what to say and what to ask when you see a broker. Let them ask the questions they need answering and reach their own conclusions. You are better off not knowing which lenders will do this and which won't.