Brittania mortgage - help

nadnad

my brittania remortgage is about to complete - on the 27th Sept. The solicitor had asked me last week about other properties and mortgages that we may have - it was a special condiiton of the mortgage that Brittania know about these. We recenty bought a site for £40K (although after our application and after the mortgage offer was made) and we will have a 38K interest only mortgage on the site.

At the time of application with Brittania we told the manager of our plans to buy a site - which is why our remortgage for our present house is interest only, this is to allow us to build our new house within the next 18months. We told her we would have another mortgage and so they both had to be interest only - she said this was fine but didn't make any note of it. Now when I spoke to the solicitor she said she had to disclose this information - I said that was fine I didn't see a problem with it, she said "it SHOULDN'T effect your mortgage application". This has worried me.

Our Brittania mortgage is for £87K - interest only = £350 per month, the reason we went with them is because there is no early repayment fee which is important as we intend to sell this house next year. Now we applied in June and its taken until now to complete. In the meantime the other sale was going through. It is £38K interest only = £170 per month.

Does anyone know if this will affect Brittania's decision? I'm worried now - we swopped to them because it was so cheap and needed this to be able to save and pay both mortgages comfortably.

Robert_Sterling_3

That is not a bad interest rate to be paying.
Their only consideration should be is there sufficient equity in the two properties ( i.e. The House and the land ) to underwrite the two loans?

nadnad

the land is worth £65K and the house about £105K. So you think they shouldn't have a problem with us having this extra mortgage even though it wasn't put on the initial application (it couldn't have been cos we didn't have it then!)? That was my first thought because we could have simply waited until the mortgage was completed before putting the mortgage on the land through and then they would never have known about it - I considered not telling them but am too honest and always worry that it would come back and bite me on the bum in some way or other!!

Robert_Sterling_3

If the land is worth £65,000 how did you manage to buy it recently for £40,000?

nadnad

the farmer needed a quick sale - and my dad knows him so he was willing to let it go at that price to get a no hassle deal - lucky for us!

nadnad

in fact if truth be told we have been told half the site could fetch about £50k for another site - and have been as much as offered this (the total land is almost 2 acres)

Robert_Sterling_3

So a farmer sells land worth £65,000 for £40,000 to get a quick no hassal sale.

nadnad

yes - why do you sound so disbelieving - I have no rason to lie it doesn't benefit me in any way!! He has planning permission for one house on the land - he sold the land to us as he knows my father and for a very reasonable sum to him - it was all we would pay and he didn't have to put it on the market and perhaps wait a few months to get an offer. If we wanted we could get planning permission for another house on the 2 acre site and sell that piece of land. Most 1/2 half acre sites where I'm from are going from £60K up - and most developers are putting 12 houses on an acre of land. We have 2 acres. What is your problem - I only asked for some advice about my mortgage I didn't ask for anyone to be sarcastic. We got an excellant deal and are thanking our lucky stars that we can build the house of our dreams. We wont be selling any of the land but the valuer placed £65K on it for our mortgage application and that was as it stands.