remortgage - own another mortgage free house

single_lonely

I need to remortgage my current and main house. Own 2 more houses which are mortage free and are rented out privatley. Income of Less than 27k, age 36.

What questions are the mortgage lenders (halifax santander) likely to ask over the phone or face to face. is it better going through a broker in cases like this (face to face).

Already have income and bank/work details.
What details would i need(if any) for the properties that are rented out.


(asking for a third party)

single_lonely

hi, i realise not anyone would have the answers but there been over 160 views, can anyone signpost other forums or posts on here which are similar. I cant find anything. thanks in advance

YHM

Would suggest going through a broker and let them worry about the questions on the application form. The fact find they will ask you will gather sufficient information to allow them to review the market for you and find a suitable lender

amnblog

Some lenders will want to see the tenancy agreements on the let properties. If you want to include the rental income for affordability, expect to show it on your tax return.

Thrugelmir

Remortgage for what purpose. Release equity?

Why the concern over what questions may be asked?

ladybabe

both brokers and lenders direct should essentially ask the same questions as per the regulation changes that happened some time ago...

single_lonely

Thrugelmir wrote: »

Remortgage for what purpose. Release equity?

Why the concern over what questions may be asked?

remortgage as current term ended several months ago and now im on standard rate.
not concerned, need to go prepared but with what documents?
I don't want to use the rental as income so tenancy agreement etc shouldn't be needed? thanks

minimike2

The tenancy agreements aren't just to show income (which is what the tax calculations for your self assessment are used for), but to discount the mortgage payment as a financial commitment.

If you can't prove that the properties are rented then the commitments will end up in your affordability calculation at the banks set affordability rate.

single_lonely

minimike2 wrote: »

The tenancy agreements aren't just to show income (which is what the tax calculations for your self assessment are used for), but to discount the mortgage payment as a financial commitment.

If you can't prove that the properties are rented then the commitments will end up in your affordability calculation at the banks set affordability rate.

the house is paid for so no financial commitment. in this case they shouldn't end up in any affordability calculation? thanks

VFR-Rider

Even though they're mortgage free, there's upkeep (some applies irrespective of rental status) - council tax, rates, maintenance etc.

minimike2

single_lonely wrote: »

the house is paid for so no financial commitment. in this case they shouldn't end up in any affordability calculation? thanks

The lender decides what is or isn't a financial commitment.

If you can't demonstrate the properties are rented out in a way which satisfies the lender, then as Rider says, commitments can be included.

Why are you reluctant to provide copies of tenancy agreements / your tax returns? It is just a case of getting them out the file and taking them to your appointment.....