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Let to Buy/BTL with no other home owned
Comments
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If any one else is able to offer any more insights I would be grateful!Mortgage Apr 18 £417,894 BTL Mar 18 £162,857
Mortgage now -- £350,085 BTL now --- £162,6680 -
Just come across this. What's the situation of the house you own? Its got a CTL (Consent to let) on it and you want to convert it to a formal BTL, but release the equity out of it to put down on your onward purchase? Is that the jist?I am a Mortgage Broker.
You should note that this site doesn't check my status as a Mortgage Broker, 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 advice0 -
FloppyDisk wrote: »Thanks Starnac, only difference is that I need the cash from the remortgage to pay the deposit for the residential.
That creates 2 potential hurdles.
1. Will you existing lender allow the release of equity for the purpose of providing a deposit.
2. Will the new lender accept these funds as a source of deposit.
Much depends on your overall financial circumstances. Possibly a scenario for a broker. In order to find you a compliant lender to finance the transaction.0 -
YHM has the jist spot on.
Finances are healthy, rent passes the stress test for the amount we are looking to remortgage the rental house for and the onward purchase is a good 100k less than we were offered on the AIP.
When you say broker, is there a best way to find brokers experienced in this sort of scenario above a standard fee free whole of market type chap/chapess? The estate agent involved is totally independent and not linked to finance products.Mortgage Apr 18 £417,894 BTL Mar 18 £162,857
Mortgage now -- £350,085 BTL now --- £162,6680 -
Only slight issue with the finance is that the new house will be 10% deposit due to the amount that we are having to pay in additional stamp duty. We are content with that amount though given the rentability and can always sell when we are less time bounded and claim it back.Mortgage Apr 18 £417,894 BTL Mar 18 £162,857
Mortgage now -- £350,085 BTL now --- £162,6680 -
Thrugelmir wrote: »That creates 2 potential hurdles.
1. Will you existing lender allow the release of equity for the purpose of providing a deposit.
2. Will the new lender accept these funds as a source of deposit.
Much depends on your overall financial circumstances. Possibly a scenario for a broker. In order to find you a compliant lender to finance the transaction.
By this do you mean stick with current lender and increase the loan? I had thought of this but I would like the house to be interest only with the choice to overpay, rather than committing me to it, hence the keenness to move away from a residential/consent to let set up.Mortgage Apr 18 £417,894 BTL Mar 18 £162,857
Mortgage now -- £350,085 BTL now --- £162,6680
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