Mortgage broker - ask me anything

Rottieland

K_S said:

Rottieland said:

Any mortgage brokers have a list of lenders that will lend on a buy to let, until 85 or no age limit at the end of term?

Thank you

@rottieland Couldn't give you a 'list' without firing up my sourcing but there are PLENTY that will consider BTL term up to 85 subject to criteria, and a good few beyond that as well. Off of the top of my head I can think of - Santander goes to 85, Leeds doesn't have an upper limit afaik, etc.

On its own, a max age of 85 at end of term is very unlikely to be a limiting factor for a BTL app.

That's great thank you very much

Rottieland

OK another one for a broker.

Family buy to let.

Other than what's coming up on Google searches
Virgin Money, Melton Mowbray Building Society and Furness Building Society

Who else can we try.

It will be her son who is renting the property.

K_S

Rottieland said:

OK another one for a broker.

Family buy to let.

Other than what's coming up on Google searches
Virgin Money, Melton Mowbray Building Society and Furness Building Society

Who else can we try.

It will be her son who is renting the property.

@rottieland On the odd occasion that I’ve done regulated BTLs, it’s always been a small BS. The last one was Leek.

Virgin’s might be called a ‘regulated BTL’, but from memory I’m pretty sure it’s assessed like a second resi. If it fits as a second resi, then you might as well look at second resi options with other lenders.

With regulated BTL the stumbling block is usually how affordability is calculated, IO/capital repayment, whether and how it considers the future rental income, etc.

Rottieland

K_S said:

Rottieland said:

OK another one for a broker.

Family buy to let.

Other than what's coming up on Google searches
Virgin Money, Melton Mowbray Building Society and Furness Building Society

Who else can we try.

It will be her son who is renting the property.

@rottieland On the odd occasion that I’ve done regulated BTLs, it’s always been a small BS. The last one was Leek.

Virgin’s might be called a ‘regulated BTL’, but from memory I’m pretty sure it’s assessed like a second resi. If it fits as a second resi, then you might as well look at second resi options with other lenders.

With regulated BTL the stumbling block is usually how affordability is calculated, IO/capital repayment, whether and how it considers the future rental income, etc.

OK thanks. I have tried getting as much Info on Google to see if it's workable. But then found out buy to let is no good if renting to family. It had to be a regulated buy to let.
So I tried to search on here for old posts that my have my answer.

Then I seen that a few member had said a normal residential would be ok

Rottieland

K_S said:

Rottieland said:

OK another one for a broker.

Family buy to let.

Other than what's coming up on Google searches
Virgin Money, Melton Mowbray Building Society and Furness Building Society

Who else can we try.

It will be her son who is renting the property.

@rottieland On the odd occasion that I’ve done regulated BTLs, it’s always been a small BS. The last one was Leek.

Virgin’s might be called a ‘regulated BTL’, but from memory I’m pretty sure it’s assessed like a second resi. If it fits as a second resi, then you might as well look at second resi options with other lenders.

With regulated BTL the stumbling block is usually how affordability is calculated, IO/capital repayment, whether and how it considers the future rental income, etc.

Would a second resi mortgage then require a consent to let?

Bigphil1474

Just wondering if we'd have to reapply for a new mortgage from the beginning based on this:-

We applied for a mortgage via HSBC in February which was approved in March, relatively small mortgage to house value 15% LTV (£50k mortgage on £325k purchase, rest from house sale and savings). Unfortunately the sale fell through and we are now looking at a completely new property which is slightly more expensive so would want a slightly larger mortgage - new LTV is 21% (£75k mortgage on £350k purchase). Affordability isn't an issue .

Can we just ask to have the mortgage amended or would it be a whole new application? (Will be with same lender).

K_S

Bigphil1474 said:

Just wondering if we'd have to reapply for a new mortgage from the beginning based on this:-

We applied for a mortgage via HSBC in February which was approved in March, relatively small mortgage to house value 15% LTV (£50k mortgage on £325k purchase, rest from house sale and savings). Unfortunately the sale fell through and we are now looking at a completely new property which is slightly more expensive so would want a slightly larger mortgage - new LTV is 21% (£75k mortgage on £350k purchase). Affordability isn't an issue .

Can we just ask to have the mortgage amended or would it be a whole new application? (Will be with same lender).

@Bigphil1474

Generally speaking - depends on the lender.

HSBC - you can get the offer reissued with the same offer ref/product/validity and change the property and tweak the loan size without requiring a new application.

If you want a full 180 day validity, then you'll need to put in an application from scratch and choose a currently available product.

theonenonly

I'm using Nationwide's Helping Hand so as to be able to get 5.5x our income. However, it doesn't stretch far enough- basically, I need to find another £25,000. Bar saving up for another year (and perhaps seeing house prices grow even further beyond my reach in that time!) am I likely to be lent an extra £20k by the lender? 

K_S

theonenonly said:

I'm using Nationwide's Helping Hand so as to be able to get 5.5x our income. However, it doesn't stretch far enough- basically, I need to find another £25,000. Bar saving up for another year (and perhaps seeing house prices grow even further beyond my reach in that time!) am I likely to be lent an extra £20k by the lender? 

@theonenonly If you’ve filled this https://www.nationwide-intermediary.co.uk/calculators/affordability-calculator in correctly, included all the income that Nationwide will consider, and used the max term (up to 75 subject to criteria), the number it gives you as the output is the maximum that they will lend. Do make sure to check if there’s a section that says “Extra help for first time buyers” because that’s where the HH figure comes in if it’s more than the standard.

Do keep in mind that 5.5x is an overall ceiling, not a standard multiplier. It acts in conjunction with all the other things that Nationwide uses to calculate affordability - stress tests, expenditure assumptions, debt/outgoings/commitments weightage, LTV, etc.

So, depending on the numbers and the specifics, it is a possibility that another lender with an enhanced borrowing product (eg: Accord’s Boost LTI) might lend you more than Nationwide will.

silvercar

theonenonly said:

I'm using Nationwide's Helping Hand so as to be able to get 5.5x our income. However, it doesn't stretch far enough- basically, I need to find another £25,000. Bar saving up for another year (and perhaps seeing house prices grow even further beyond my reach in that time!) am I likely to be lent an extra £20k by the lender? 

Do you have someone else eg a parent who could go on the mortgage with you? Joint borrower, single owner mortgages would allow another persons income to be considered when assessing affordability.