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New mortgage lender wants me to sell my BTL

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New mortgage lender wants me to sell my BTL

edited 30 November -1 at 1:00AM in House Buying, Renting & Selling
17 replies 2.8K views
rentmekidrentmekid Forumite
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edited 30 November -1 at 1:00AM in House Buying, Renting & Selling
Hi everyone,

I am looking to purchase a new property to live in, and the lender that I have gone with (BOS) has approved my mortgage on the condition that I sell the BTL that I have with them.

They have also given me a 3 month timescale of completion to do this.

Does anyone have any experience of this or know of any issues in case my property doesn’t sell?

Thank you
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Replies

  • marliepandamarliepanda
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    rentmekid wrote: »
    Hi everyone,

    I am looking to purchase a new property to live in, and the lender that I have gone with (BOS) has approved my mortgage on the condition that I sell the BTL that I have with them.

    They have also given me a 3 month timescale of completion to do this.

    Does anyone have any experience of this or know of any issues in case my property doesn’t sell?

    Thank you

    If the sale is a condition of your mortgage, and you don't sell, then you don't get a mortgage...
  • rentmekidrentmekid Forumite
    78 posts
    Third Anniversary
    to clarify, they want me to sell within 3 months of after I purchase my new home
  • hazyjohazyjo Forumite
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    That's very tight! Takes 3 months average from offer to completion. What if it takes you several months to find a buyer?!
    2020 wins: nada (yet)
  • kingstreetkingstreet Forumite
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    Are you 100% sure it#s 'sell the property' and not 'repay existing BOS mortgage' as that would sound far more realistic/logical?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • ACGACG Forumite
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    Did someone tick the application form to say that the mortgage on the BTL would have been cleared by completion of this new application?

    Did you use a broker or apply directly?
    What made you apply to BoS if they want the BTL selling? - Although as Kingstreet says, it seems like an unusual requirement.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • dimbo61dimbo61 Forumite
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    Are you on a good rate with BOS on your BTL Mortgage ?
    What is the yield ?
    Are you taking on more debt ?
  • G_MG_M Forumite
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    I'm going to assume you don't want to sell the BTL - otherwise why the query?
    rentmekid wrote: »
    I am looking to purchase a new property to live in, and the lender that I have gone with (BOS) has approved my mortgage on the condition that I sell the BTL that I have with them.
    Why would you go with a lender who imposes a condition you are not happy with? Go with a different lender!
    ** If I include a blue link in my post, click and read it before posting a follow-up question. The answer may be in the link! **
  • rentmekidrentmekid Forumite
    78 posts
    Third Anniversary
    Kingstreet - yes you are correct, they want the balance repaid (£120k) - I assumed they wanted me to sell.


    G-M - yes, I want to keep this btl


    Dimbo61 - the rate is their standard 4.94%, I know its poor, but I don't have enough equity to remortgage
  • 00ec2500ec25
    9.1K posts
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    rentmekid wrote: »
    Kingstreet - yes you are correct, they want the balance repaid (£120k) - I assumed they wanted me to sell.
    so the scenario has more possibilities than your thread title suggests. In order to get a BoS residential mortgage on your new home you must a) pass the income/affordability tests for that property and b) still meet the generic income requirement they use for a BTL mortgage. It appears you pass a) but fail b), so they have imposed the condition that the BoS BTL mortgage must be repaid. They have not said the property itself must be sold.

    We will take as read that you cannot afford to repay the BoS BTL mortgage otherwise you would have the cash to buy the new home to start with. Therefore, could you:

    a) take the BoS residential mortgage as offered and purchase the new home
    also
    b) re-mortgage the BTL with another lender so that the borrowed funds pay off the BoS BTL mortgage and do so within 3 months of step a)?

    Have you checked with BoS whether they would accept your BoS residential mortgage if there was a non BoS BTL mortgage in existence? basically they do not want the risks of having you as a borrower indebted to them for 2 mortgages, but may be if the second mortgage is someone else's risk then BoS will still be happy to let you buy the new home on a resi mortgage. You can but ask...
  • nyermennyermen Forumite
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    Extra point - (I don't read it above) - If the BTL property has an existing tenant, it will reduce the market to only other BTL-ers, or someone willing to wait for an eviction.
    Peter

    Debt free - finally finished paying off £20k + Interest.
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