Struggling to get a buy to let mortgage

terryhannon

Hi, I am struggling trying to get a buy to let mortgage on a property i own. When i purchased it, it was next to a newsagents and i got a mortgage no problem. The newsagents has now become a fast food takeaway shop and no lender will touch it for some reason. I am left paying the higher variable rate and in a position where i might be unable to sell it. Can anyone offer any advice? is anyone aware of a lender who will lend in this situation? My mortgage adviser has tried a few but getting nowhere. Hope you can help, thanks. Terry.

K_S

@terryhanon What's your current broker suggesting as a way forward? Is he/she saying that there are no options at all or that there are options but at lower LTV, higher rates, etc?

If the property is successfully let, you can evidence a rental track record, I find it a bit hard to accept that it's completely un-mortgageable for a like-4-like remortgage, even though it is adjacent to a takeaway. 

[Deleted User]

who is your current lender?  As K_S said, a property that is proven to rent shouldnt be hard to place but it could be that your broker is struggling to find a better option than you currently have.   A lot of the most flexible lenders arent high street lenders and wouldnt offer the cheapest rates.   
Does your lender not offer any product transfer options? 

terryhannon

K_S said:

@terryhanon What's your current broker suggesting as a way forward? Is he/she saying that there are no options at all or that there are options but at lower LTV, higher rates, etc?

If the property is successfully let, you can evidence a rental track record, I find it a bit hard to accept that it's completely un-mortgageable for a like-4-like remortgage, even though it is adjacent to a takeaway. 

My broker has suggested sticking with my current lender and hoping they do a desk top valuation. i'm hoping to release funds to put towards another project. She has asked other lenders and they are all saying the same thing so no option to go to a lender with higher rates. Just hoping someone on here has experienced the same thing and could suggest a potential lender who would accept this.

terryhannon

Deleted_User said:

who is your current lender?  As K_S said, a property that is proven to rent shouldnt be hard to place but it could be that your broker is struggling to find a better option than you currently have.   A lot of the most flexible lenders arent high street lenders and wouldnt offer the cheapest rates.   
Does your lender not offer any product transfer options? 

My current lender is Kensington Mortgages. My broker is very good so i have no doubt she has done her best to scour the market. As I would like to release funds, they may want to send a valuer which could end up with me being on their variable rate.

K_S

terryhannon said:

K_S said:

@terryhanon What's your current broker suggesting as a way forward? Is he/she saying that there are no options at all or that there are options but at lower LTV, higher rates, etc?

If the property is successfully let, you can evidence a rental track record, I find it a bit hard to accept that it's completely un-mortgageable for a like-4-like remortgage, even though it is adjacent to a takeaway. 

My broker has suggested sticking with my current lender and hoping they do a desk top valuation. i'm hoping to release funds to put towards another project. She has asked other lenders and they are all saying the same thing so no option to go to a lender with higher rates. Just hoping someone on here has experienced the same thing and could suggest a potential lender who would accept this.

@terryhannon Ah, ok so you need to release cash, not a like-4-like remo. If you're with Kensington, I'm guessing you're at a high LTV already? That might be one of the aspects making it tricky.

But if you're with a good broker then you're doing the right thing. Even so, if she isn't a specialist BTL broker, before giving up I would recommend getting a second opinion from one. Good luck!