Mortgage broker - ask me anything

haras_n0sirrah

xcvx said:

Hey, this is a little lengthy but hoping for some advice. 
Myself and partner are looking to buy our first home using the 20% equity loan. I have 5 defaults dating from April 2018 - Dec 18 ranging from £28 to £500. All now fully satisfied. I also have a history of multiple payday loan use in 2017 and which one of these defaulted which I wasn't aware of until march when we first looked into my credit files. 
We were going to do this this year but due to the defaults we decided not too and the house we now have an early bird on will be released in March 21. We had a DIP with precise at 4.0% but hoping now the defaults will be over 24 months,  prehaps we could go somewhere else. 

I have recently paid off my car finance with just my loan which will finish before completion date and my partner is selling his financed car before march to pay off, meaning he will just have a £200 child maintainance payment to make. We both obviously have phone contacts, fuel etc. Our salaries are £27k and £21k and house price is £235k ish.

Thanks in advance 

It is going to come down to the credit report and the dates and amounts on that.

MSN2220

Hello,

Our application has been satisfied in terms of docs and valuation. However we had an issue with gift deposit form, we have been told that my uncle can’t gift us the money as he isn’t immediate family. Have you had this issue before with Kent reliance? 

Thanks! 

haras_n0sirrah

MSN2220 said:

Hello,

Our application has been satisfied in terms of docs and valuation. However we had an issue with gift deposit form, we have been told that my uncle can’t gift us the money as he isn’t immediate family. Have you had this issue before with Kent reliance? 

Thanks! 

Yes. Kent are direct bloodline only (parents, siblings, grandparents, children). I once got them to approve an aunt but the applicant had lived with the aunt since their own mother died when the applicant was 12 so it was taken as a 'parental' gift 

MSN2220

haras_n0sirrah said:

MSN2220 said:

Hello,

Our application has been satisfied in terms of docs and valuation. However we had an issue with gift deposit form, we have been told that my uncle can’t gift us the money as he isn’t immediate family. Have you had this issue before with Kent reliance? 

Thanks! 

Yes. Kent are direct bloodline only (parents, siblings, grandparents, children). I once got them to approve an aunt but the applicant had lived with the aunt since their own mother died when the applicant was 12 so it was taken as a 'parental' gift 

Do you think I would be okay to be change to my sister giving us the money instead? 

Thanks 

haras_n0sirrah

MSN2220 said:

haras_n0sirrah said:

MSN2220 said:

Hello,

Our application has been satisfied in terms of docs and valuation. However we had an issue with gift deposit form, we have been told that my uncle can’t gift us the money as he isn’t immediate family. Have you had this issue before with Kent reliance? 

Thanks! 

Yes. Kent are direct bloodline only (parents, siblings, grandparents, children). I once got them to approve an aunt but the applicant had lived with the aunt since their own mother died when the applicant was 12 so it was taken as a 'parental' gift 

Do you think I would be okay to be change to my sister giving us the money instead? 

Thanks 

It would be ok if your sister already has the money and is prepared to gift it to you. Your uncle cannot give it to her and she give it to you as the solicitor will want the giftor bank statement for 3 months to show source of gift 

MSN2220

She has already sent it to me and signed the gift deposit form. She gave it from her savings. So that should be fine right? But the main issue I’m concerned about is if Kent won’t accept us changing the giftor, would that be possible? 

haras_n0sirrah

MSN2220 said:

She has already sent it to me and signed the gift deposit form. She gave it from her savings. So that should be fine right? But the main issue I’m concerned about is if Kent won’t accept us changing the giftor, would that be possible? 

All you can do is send it in and see

MSN2220

haras_n0sirrah said:

MSN2220 said:

She has already sent it to me and signed the gift deposit form. She gave it from her savings. So that should be fine right? But the main issue I’m concerned about is if Kent won’t accept us changing the giftor, would that be possible? 

All you can do is send it in and see

Great thanks 

Fork_It_Off

I know it is very difficult and much harder to profit on these days but I am looking into the possibility or renting my current house out and moving to another property (which we were looking at buying and selling anyway), the extra complication is we have a fix mortgage with HSBC which doesnt run out until October next year so will either have to port or pay early repayment charge 1% (2.2k).  After intial research it looks like the only way to make it worthwhile is to do it through a limited company, benefiting from the two stamp duty holidays helps aswell.

Here are my details:

Current property value 420k
Current property likely rental (£1500pcm) low yield I know but solves some other issues for us.
Current mortgage debt 220k
Current equity 200k
Current mortgage is a fix 1.19% ending October 1st 2021
Current house new deposit 100k

Next house value (max possible) likely 600k
Next house max borrowing from HSBC 505k
Next house starting deposit 100-120k

So questions:
1- What would be the most tax/cost efficient way both on rental and capital gains to go ahead with this, limited company yes/no, pros/cons.
2- Im struggling to find many decent deals for buy to let mortgages specifically ones through limited companies, any reccomendations?
3- Anything else I havent really considered or useful advice?

Thanks

haras_n0sirrah

Fork_It_Off said:

I know it is very difficult and much harder to profit on these days but I am looking into the possibility or renting my current house out and moving to another property (which we were looking at buying and selling anyway), the extra complication is we have a fix mortgage with HSBC which doesnt run out until October next year so will either have to port or pay early repayment charge 1% (2.2k).  After intial research it looks like the only way to make it worthwhile is to do it through a limited company, benefiting from the two stamp duty holidays helps aswell.

Here are my details:

Current property value 420k
Current property likely rental (£1500pcm) low yield I know but solves some other issues for us.
Current mortgage debt 220k
Current equity 200k
Current mortgage is a fix 1.19% ending October 1st 2021
Current house new deposit 100k

Next house value (max possible) likely 600k
Next house max borrowing from HSBC 505k
Next house starting deposit 100-120k

So questions:
1- What would be the most tax/cost efficient way both on rental and capital gains to go ahead with this, limited company yes/no, pros/cons.
2- Im struggling to find many decent deals for buy to let mortgages specifically ones through limited companies, any reccomendations?
3- Anything else I havent really considered or useful advice?

Thanks

Mortgage brokers aren't given permissions to advise on tax matters so that is something for an accountant to advise on. The rental yield will determine how much you can borrow on the btl and most btl products are only available via brokers.