Buy to Let my property refused by mortgage lender - so what is my next move????

herbiesjp

Lenders will not pay the charges for you, but you can add the £3700 to the loan and get around it that way - assuming the rental income is now enough to cover this higher amount. If you then have a deal that allows overpayments you can then chip away at that extra amount when you can, assuming you want to go down that route of adding the fee

danol21

If i added the fees on to my loan then it comes to approx £105,000, which gives me a LTV of approx 84%.

Realistically, should i just admit defeat and just leave my place empty, keep paying the mortgage until a time when either the mortgage reduces enough for me to take the BTL route or if i get a windfall.

OR

Is it still realistic to move to another lender (baring in mind the current climate) so i can get the BTL i am after?

Dan

herbiesjp

Plenty lenders will do 85% BTL mortgages assuming the rental income is sufficient - it really depends on what your goals are and what your priority is

rrwfotr

Yant1 wrote: »

Just rent it out anyway, I know one guy thats got 4 BTLs on normal mortgages without declaration.

This is a very risky way to do business, the person may be making a short term gain, but any damage to the property may not be covered as the person may not be properly insured. I know with some insurance polices it states in the t&c's that the property has to be let with the consent of the mortgage company.

Gorgeous_George

I would sell it - quick! That is if you believe prices will fall. The penalty charge could seem like small beer in one or two years' time.

Other options include:
1) Letting without permission. Not a good idea at the best of times but now that you have asked and been refused, you can't even plead ignorance. I wouldn't do it.

2) Reduce the mortgage to improve the LTV and to meet NR's criteria. Raising funds by personal loan, stoozing or re-mortgage GF's house.

3) Rent-a-room (or two). You stay at the property (honest) but rent-a-room. I'm not sure what the rent limit is but a co-operative tenant may pay any extra in cash in return for you not being at home very often . I'd consider this if you are honest with thet tenant.

Personally, I'd still sell. Invest any profit and watch the balance increase month on month without the hassle of being a landlord.

Good luck.

GG

[Deleted User]

Gorgeous_George wrote: »

3) Rent-a-room (or two). You stay at the property (honest) but rent-a-room. I'm not sure what the rent limit is but a co-operative tenant may pay any extra in cash in return for you not being at home very often . I'd consider this if you are honest with thet tenant.

Genius

You can stay on the sofa one night a week and rent out your rooms, youll prob get more in rent doing it that way

Plus you can chuck them out without notice if they fail to pay up as its your primary residence. :rotfl:

danol21

Selling my property is something i really do not want to do.
reasons being:

a) Its in a nice part of cheshire just off the town centre and very ideal!!;

b) If me and GF ever part ways i have somewhere to go back to;


If needs be i will just leave it empty for a while, just think this is a waste and would like to utilize my property with its location etc to the max.

motch

Hi dano

The idea of leaving it empty and still paying out on a high mortgage just seems crazy to me, in one year you'll be paying out about 7 grand! + council tax ? (I don't know the score with council tax if the property is empty - do you still have to pay?) + possible maintanance charges.

How feasable would it be for both you and your GF to move into your apartment and for your girlfriend to rent her place out (and GF pays you rent for a room say) would have a nice new kitchen and bathroom for yourselves too.

Which town in cheshire is your place in ? and how many bedrooms

danol21

Hi Motch,

my apratment is one bedroomed and located in Nantwich in Cheshire and with my GF and our 4 cats it would be too small. It was ideal for me when i was single and just my 2 cats, but now the family has doubled and it is just not feasible.

There is also no possability of GF renting hers out just yet either, she does intend to when we get get our own place in couple of years.

I Just feel that im in a no win situation.

-My place is to be honest a little gold mine, for location etc so have no plans what so ever to sell it;

-Would like to rent mine out but Northern Rock say no (unless i pay like 5.5k) upfront to reduce my LTV;

-Moving to another Lender would also be an option but i would also incur early charges from NR for about 4k;

Decisions, decisions!!

Dan

silvercar

Yant1 wrote: »

Genius

You can stay on the sofa one night a week and rent out your rooms, youll prob get more in rent doing it that way

Plus you can chuck them out without notice if they fail to pay up as its your primary residence. :rotfl:

Seems the best idea to me, though you will be restricting yourself on tenants - not all will want the landlord on their sofa.

No limit on what you can charge, though the first £4,500 (approx) is tax free under the government rent a room scheme.

Leaving the property empty makes no sense and would probably affect your insurance.