Mortgage problems

jemouk1

It all started 10 years ago when I was talked into becoming a landlord , I took 7 interest only mortgages out all ending different years now the first mortgage is coming to it end I need to remortgage to pay off the first one ive been thinking about putting all the mortgages together on a repayment my question is is this possible?
I am trying to save all the fees of multiple mortgages
Could the company go limited? Thank you

MortgageMamma

Hello


There isn't enough information to answer your question fully, but have you considered asking the lender for a term extension whilst you figure out what to do? If the repayments are made on time and its profitable a lot of lenders would consider extending the term for perhaps five years. Who is your mortgage lender?


As you have 7 mortgages you would now be classed as a portfolio landlord under the new rules. This means lenders would expect you to have a business plan in place for the properties. Its not as scary as it sounds. It also means that your portfolio would be assessed on the aggregate loan to value, as well as the loan to value on individual properties. For most lenders you would be expected to have an earned salary of around 20-25k as well as the rental properties. There are still one or two lenders around who do not insist on this though.


Do you have an accountant or tax adviser? speak to them before going limited, they will be able to do a viability check for you.


It would be a good idea to ensure that you are achieving 125-145% of the mortgage payment @ an interest rate of say 5% to keep most lenders happy.


It might be a good idea now to speak with a broker and see what you are up against for your specific portfolio - it will also give you a good idea of lender charges.

jemouk1

I ask for a mortgage extension but my lend has now stopped lending money I will go to my broker and ask them thank you

silvercar

Could the company go limited?

Are the properties owned by the company or by yourself?

A company "going limited" means nothing other than limited liability in the face of trading difficulties.

If you mean transferring the properties from personal ownership to being owned by the company, that would involve stamp duty, re-mortgaging and a personal CGT liability.