Regulated mortgage

Liberal

I am starting the process of finding a regulated mortgage in order to buy a house to rent out to a family member.
I thought a simple Google search would at least reveal all who provided such a mortgage. But no. I do intend to use a mortgage broker but wanted to be well informed 1st. Anyone know a short cut?

MattMattMattUK

Liberal said:

I am starting the process of finding a regulated mortgage in order to buy a house to rent out to a family member.

What do you mean by "regulated mortgage"? All mortgage lending in the UK is regulated. As you are going to be letting the property you will need a Buy to Let mortgage, not a residential mortgage. 

Liberal said:

I thought a simple Google search would at least reveal all who provided such a mortgage. But no. 

You would first have to get your terminology correct to have any kind of chance of that happening, but even then, likely no.

Liberal said:

I do intend to use a mortgage broker but wanted to be well informed 1st. Anyone know a short cut?

The short cut is to speak to a broker, the long route is to research the whole marker and all products, which would take months of solid work.

silvercar

MattMattMattUK said:

Liberal said:

I am starting the process of finding a regulated mortgage in order to buy a house to rent out to a family member.

What do you mean by "regulated mortgage"? All mortgage lending in the UK is regulated. As you are going to be letting the property you will need a Buy to Let mortgage, not a residential mortgage. 

All mortgages are regulated in one sense, but residential mortgages fall under slightly different rules to BTL mortgages. The latter are deemed a business transaction. A regulated mortgage is a mortgage that allows the property to be let to a family member, whereas most BTL mortgages explicitly don't allow this. So effectively, the mortgage falls under the residential rules and as such is considered regulated. 

The logic is that you wouldn't evict your family member if they fell behind with the rent as quickly as you would tackle rent arrears on a business like BTL. Lenders often prefer to look at affordability as if it were a residential mortgage. My understanding from previous comments by brokers on here is that regulated BTL products are hard to come by. 

ACG

I think they mean regulated BTL. 

Its quite a small niche part of the market. The lenders who do it are typically small little building societies most of which you probably will not have even heard of. 

I suppose the short cut is to just go to a broker. 
The problem with trying to do your own research is that there are lots of little bits of details that you might miss. So then it becomes a case of "why did you not try this or that lender" and then the broker is having to explain it - which is fine, it keeps us on our toes. But it also creates more work. 

Liberal

OK thanks. Yes it is a regulated buy to let I am after. I know they are in short supply but just thought I would be able to find a list of who offered them. Obviously not!

Hoenir

Google the term and you'll find some answers. 

amnblog

Liberal said:

I do intend to use a mortgage broker but wanted to be well informed 1st. 

Why? Well informed about what? A list from an unverified source?

silvercar

amnblog said:

Liberal said:

I do intend to use a mortgage broker but wanted to be well informed 1st. 

Why? Well informed about what? A list from an unverified source?

It’s not unreasonable to want to be informed first. At least to have an idea of how difficult it would be to find such a mortgage and the sort of interest rates charged. At least then the conversation with a mortgage broker can start with some knowledge.