Mortgage broker - ask me anything

K_S

sammyj84 said:

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

Hello 
Do you know of any lenders that will accept a maisonette with Deck/balcony access? 
We are first time buyers in Birmingham trying to by our council home, value is £110,000 purchase price £41,800.

@sammyj84 There are lenders who will consider RTB purchases of council-freeholder maisonettes with deck access. What is the LTV you are looking for? And are you looking to capital raise as well? And I'm assuming your S125 says a market value of £110k

If you are looking to borrow the £41,800, the LTV is 38%

If you are looking to borrow the £41,800 purhcase price + £47k capital raise for home improvements, the LTV is 80%

Both cases are entirely different. Which is it that you are looking to do?

Looking for £47k total, (£41,800 purchase price + £5,200)

@sammyj84 To borrow 100% of the purchase price of £41,800, you should have a couple of lender options who will consider. If you absolutely want to raise the extra cash on top, it's much much tougher.

Apparently lenders allow this with right to buy, its the fact its a Deck/balcony access which is the issue. 

@sammyj84 With all due respect, you're going around in circles here.

Very few lenders allow raising capital on an RtB purchase, Nationwide being one of them. Only a few lenders will lend on deck access council flats for RTB purchases. If you need a lender that ticks BOTH boxes, as you've seen, it's a struggle.

But if you're willing to focus on the purchase, there are lenders who will lend on a council deck access flat for an RTB purchase at 50% LTV.

Thats strange then as they agreed the £47k for us. 

But i will happily forget the extra if we can just purchase it, thats the main thing we want. 

Nationwide said yes to us but to the property and haifax have said yes to the property and no to us! 

@sammyj84 Halifax decline as well? Is the broker literally just going down the list of cheapest lenders one by one?

Yes they did. 
She said they was Halifax was the only one that would accept Deck access (we wasnt aware this was an issue when we applied with Nationwide) 

@sammyj84 That's not entirely correct. At < 50% LTV, there are a handful of lenders who will consider deck-access flats for RTB purchases. But of course there might be other non-proprrty reasons for placing you with Halifax.

carson321

Hi, 
I have a mortgaged property as my only and hence main residence. I want to buy a new home to move in to move in to as my main residence and take my current home to BTL mortgage and rent it out. Do I still have to pay the additional SDLT on my new home (higher value) or can I pay it on my current home that will become a BTL rented property? 

sammyj84

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

Hello 
Do you know of any lenders that will accept a maisonette with Deck/balcony access? 
We are first time buyers in Birmingham trying to by our council home, value is £110,000 purchase price £41,800.

@sammyj84 There are lenders who will consider RTB purchases of council-freeholder maisonettes with deck access. What is the LTV you are looking for? And are you looking to capital raise as well? And I'm assuming your S125 says a market value of £110k

If you are looking to borrow the £41,800, the LTV is 38%

If you are looking to borrow the £41,800 purhcase price + £47k capital raise for home improvements, the LTV is 80%

Both cases are entirely different. Which is it that you are looking to do?

Looking for £47k total, (£41,800 purchase price + £5,200)

@sammyj84 To borrow 100% of the purchase price of £41,800, you should have a couple of lender options who will consider. If you absolutely want to raise the extra cash on top, it's much much tougher.

Apparently lenders allow this with right to buy, its the fact its a Deck/balcony access which is the issue. 

@sammyj84 With all due respect, you're going around in circles here.

Very few lenders allow raising capital on an RtB purchase, Nationwide being one of them. Only a few lenders will lend on deck access council flats for RTB purchases. If you need a lender that ticks BOTH boxes, as you've seen, it's a struggle.

But if you're willing to focus on the purchase, there are lenders who will lend on a council deck access flat for an RTB purchase at 50% LTV.

Thats strange then as they agreed the £47k for us. 

But i will happily forget the extra if we can just purchase it, thats the main thing we want. 

Nationwide said yes to us but to the property and haifax have said yes to the property and no to us! 

@sammyj84 Halifax decline as well? Is the broker literally just going down the list of cheapest lenders one by one?

Yes they did. 
She said they was Halifax was the only one that would accept Deck access (we wasnt aware this was an issue when we applied with Nationwide) 

@sammyj84 That's not entirely correct. At < 50% LTV, there are a handful of lenders who will consider deck-access flats for RTB purchases. But of course there might be other non-proprrty reasons for placing you with Halifax.

Do you know who else i could try? 

She said some more would but they had other criteria (for deck access) such as property must be worth £150k or more, or more than 50% must be privately owned, which neither of the above apply to us. 

K_S

carson321 said:

Hi, 
I have a mortgaged property as my only and hence main residence. I want to buy a new home to move in to move in to as my main residence and take my current home to BTL mortgage and rent it out. Do I still have to pay the additional SDLT on my new home (higher value) or can I pay it on my current home that will become a BTL rented property? 

@carson321 The 3% surcharge (assuming England) will be on the home that you are buying unfortunately.

K_S

sammyj84 said:

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

Hello 
Do you know of any lenders that will accept a maisonette with Deck/balcony access? 
We are first time buyers in Birmingham trying to by our council home, value is £110,000 purchase price £41,800.

@sammyj84 There are lenders who will consider RTB purchases of council-freeholder maisonettes with deck access. What is the LTV you are looking for? And are you looking to capital raise as well? And I'm assuming your S125 says a market value of £110k

If you are looking to borrow the £41,800, the LTV is 38%

If you are looking to borrow the £41,800 purhcase price + £47k capital raise for home improvements, the LTV is 80%

Both cases are entirely different. Which is it that you are looking to do?

Looking for £47k total, (£41,800 purchase price + £5,200)

@sammyj84 To borrow 100% of the purchase price of £41,800, you should have a couple of lender options who will consider. If you absolutely want to raise the extra cash on top, it's much much tougher.

Apparently lenders allow this with right to buy, its the fact its a Deck/balcony access which is the issue. 

@sammyj84 With all due respect, you're going around in circles here.

Very few lenders allow raising capital on an RtB purchase, Nationwide being one of them. Only a few lenders will lend on deck access council flats for RTB purchases. If you need a lender that ticks BOTH boxes, as you've seen, it's a struggle.

But if you're willing to focus on the purchase, there are lenders who will lend on a council deck access flat for an RTB purchase at 50% LTV.

Thats strange then as they agreed the £47k for us. 

But i will happily forget the extra if we can just purchase it, thats the main thing we want. 

Nationwide said yes to us but to the property and haifax have said yes to the property and no to us! 

@sammyj84 Halifax decline as well? Is the broker literally just going down the list of cheapest lenders one by one?

Yes they did. 
She said they was Halifax was the only one that would accept Deck access (we wasnt aware this was an issue when we applied with Nationwide) 

@sammyj84 That's not entirely correct. At < 50% LTV, there are a handful of lenders who will consider deck-access flats for RTB purchases. But of course there might be other non-proprrty reasons for placing you with Halifax.

Do you know who else i could try? 

She said some more would but they had other criteria (for deck access) such as property must be worth £150k or more, or more than 50% must be privately owned, which neither of the above apply to us. 

@sammyj84 Sorry, that would be advice on the basis of little to no information. I'm sure your broker will find an appropriate lender, I haven't seen anything yet to indicate that the property is un-mortgageable unless you're only interested in chart topping rates.

PayItOff

Hi, we’ll be looking to buy early next year, first time buyers. My partner is employed on a decent wage but I’m self employed sole trader. I wanted to know whether the Loan - Income ratio is worked out on my turnover, gross or net? 

carson321

K_S said:

carson321 said:

Hi, 
I have a mortgaged property as my only and hence main residence. I want to buy a new home to move in to move in to as my main residence and take my current home to BTL mortgage and rent it out. Do I still have to pay the additional SDLT on my new home (higher value) or can I pay it on my current home that will become a BTL rented property? 

@carson321 The 3% surcharge (assuming England) will be on the home that you are buying unfortunately.

@K_S that's exactly what I thought and the conclusion I had come to. I don't suppose there are any ways of transferring ownership of current lower value property, say to family member with no current property ownership while still paying the mortgage myself? Obviously there are solicitor fees involved etc, but would this count as tax evasion, particularly if I was to buy back/ change ownership at a later date. 

K_S

PayItOff said:

Hi, we’ll be looking to buy early next year, first time buyers. My partner is employed on a decent wage but I’m self employed sole trader. I wanted to know whether the Loan - Income ratio is worked out on my turnover, gross or net? 

@payitoff Net profit as on your SA302.

sammyj84

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

K_S said:

sammyj84 said:

Hello 
Do you know of any lenders that will accept a maisonette with Deck/balcony access? 
We are first time buyers in Birmingham trying to by our council home, value is £110,000 purchase price £41,800.

@sammyj84 There are lenders who will consider RTB purchases of council-freeholder maisonettes with deck access. What is the LTV you are looking for? And are you looking to capital raise as well? And I'm assuming your S125 says a market value of £110k

If you are looking to borrow the £41,800, the LTV is 38%

If you are looking to borrow the £41,800 purhcase price + £47k capital raise for home improvements, the LTV is 80%

Both cases are entirely different. Which is it that you are looking to do?

Looking for £47k total, (£41,800 purchase price + £5,200)

@sammyj84 To borrow 100% of the purchase price of £41,800, you should have a couple of lender options who will consider. If you absolutely want to raise the extra cash on top, it's much much tougher.

Apparently lenders allow this with right to buy, its the fact its a Deck/balcony access which is the issue. 

@sammyj84 With all due respect, you're going around in circles here.

Very few lenders allow raising capital on an RtB purchase, Nationwide being one of them. Only a few lenders will lend on deck access council flats for RTB purchases. If you need a lender that ticks BOTH boxes, as you've seen, it's a struggle.

But if you're willing to focus on the purchase, there are lenders who will lend on a council deck access flat for an RTB purchase at 50% LTV.

Thats strange then as they agreed the £47k for us. 

But i will happily forget the extra if we can just purchase it, thats the main thing we want. 

Nationwide said yes to us but to the property and haifax have said yes to the property and no to us! 

@sammyj84 Halifax decline as well? Is the broker literally just going down the list of cheapest lenders one by one?

Yes they did. 
She said they was Halifax was the only one that would accept Deck access (we wasnt aware this was an issue when we applied with Nationwide) 

@sammyj84 That's not entirely correct. At < 50% LTV, there are a handful of lenders who will consider deck-access flats for RTB purchases. But of course there might be other non-proprrty reasons for placing you with Halifax.

Do you know who else i could try? 

She said some more would but they had other criteria (for deck access) such as property must be worth £150k or more, or more than 50% must be privately owned, which neither of the above apply to us. 

@sammyj84 Sorry, that would be advice on the basis of little to no information. I'm sure your broker will find an appropriate lender, I haven't seen anything yet to indicate that the property is un-mortgageable unless you're only interested in chart topping rates.

Ok, i understand.
No she said there is no more she can do for us as no more lenders to try at all, so I'm kinda now trying to find something by self. 

Capri84

MA did a DIP application for us that was referred to underwriters. It’s for a 95% mortgage. 

He said affordability was passed, is it normal in current times for the underwriters to take a look like this before ok-ing it? He said he expected it, but he did then ask if there’s anything in my credit history I haven’t told him about. - there isn’t. 999 on experian and 560 on equifax.