mortgage rejection.

haydee

Hi there,
I have a house worth £420,000 with no mortgage. I am trying to get a mortgage to buy a 'buy to let' property. Because I cannot show 5 years of mortgage repayment no one will give me a mortgage. I am only looking at about £80,000. Any suggestions?

_Andy_

Who's told you you can't get a BTL mortgage without 5 years repayment history?

nspnick

Should be no problem providing you have no credit problems and a half decent income. You need to speak to a good whole of market mortgage broker.

lisyloo

Hi Haydee.

Just wanted to point out that I think buying a BTL right now is financial suicide.
Have you done your research into the state of the housing market? general economy?

If you know your stuff then ignore but if you haven't done research then I would strngly advise you to do so.

Newbird

Reading this and just my 2p worth....Not necessarily Lisyloo...in this current climate there is an argument that BTL can be good, due to falling purchase prices, and demand for rentals increasing (rents are even being pushed up in high demand areas) as some will sell up their property now, rather than risk further drops - investing the takings in high interest accounts and then renting before re-purchasing - waiting for the further falls predicted...Could still be a lucrative way to go, depends how long the housing market is falling....and how long you envisage holding onto your BTL property.

Wouldn't bet on buying BTL flats tho, the market is now overrun with them. Houses are a better option.

Griptool

Newbird wrote: »

Reading this and just my 2p worth....Not necessarily Lisyloo...in this current climate there is an argument that BTL can be good, due to falling purchase prices, and demand for rentals increasing (rents are even being pushed up in high demand areas) as some will sell up their property now, rather than risk further drops - investing the takings in high interest accounts and then renting before re-purchasing - waiting for the further falls predicted...Could still be a lucrative way to go, depends how long the housing market is falling....and how long you envisage holding onto your BTL property.

Wouldn't bet on buying BTL flats tho, the market is now overrun with them. Houses are a better option.

You've got absolutely no idea what your talking about - Check out the BBA figures released today (BBA figures are a 6-9 month leading indicator of house prices) they show a full scale melt down. Anyone buying a property in today will loss money.

If you don't believe me why don't you install Property Bee into your Firefox browser and watch the meltdown in real time - or check out todays Barnard Marcus auction where some properties were being sold at 2003 prices (-34%)

Before you encourage some muppet to sink a !!!!!! load of money into property put down the daily express and educate yourself on the current state of the market.

Kind regards

Newbird

Hi Griptool...erm...
I'm not encouraging anyone to do anything, just putting another point of view across for the OP to consider, thats all. Tho its now getting a bit off topic....

I don't read the Daily Express BTW, praps you do, as you seem to know what they're publishing? I did tho read an interesting report in a broadsheet recently.

So you're telling me some of the rental guys making those big fat profits are lying are they? What for? Nope, they are bragging about their inflated rental incomes and how pleased they are with their rental portfolios...

If you read my post again, slowly - you will see I put in the proviso 'depends how long you envisage keeping a BTL property.' Of course the market is falling, and IMO it will continue to do so for a while. It depends what you're buying and where and for how much....

I've seen the figures on various sites thx and I keep a close eye on my locality too- what are you saying, that its not a good time to buy? while you can still possibly bag a reasonable mortgage deal?

You have a crystal ball that says house prices will not recover long term? it also shows you the future base and avg mortgage rates for years to come?? Oh yeh, I see - you do have one don't you? silly me for thinking you don't.....it enables you to make these amazing sweeping statements quote/unquote from you above -
"Anyone buying a property in today will loss money."

So no one should buy anything now, eh? - exacerbating the market slump and forgoing their own personal best interests?
cos you know better.....? rite.....:think:

Griptool....eh? if the cap fits....;) :rotfl:

nite nite x

Newbird

GT -Your advice to another couple of posters previously...directly quoted....your words...:o

"Remember its cheaper to rent than own at the moment.You haven't said if you've sold your house - if you have consider continuing with your sale and find a rented property, (you may be in a better financial position using your equity (currently diminishing) to pay down the debt.)"

I presume you meant if they haven't sold yet, they should continue with the sale...
to go into errm....rented accom.

Not only but also - this one....

"If your fixed rate is coming up to renewal and you have less than 20% equity sell NOW and rent until it settles down (years i'm afraid) or risk losing everything."

Which seems to correlate with the POV I mentioned, does it not?

"I've sold to rent so my money is where my mouth is"
You still renting yourself then? LoL (ahem...I'll rephrase that)....Still renting property yourself then??
Lucky you found a landlord who is hanging on to his rental property (instead of selling quick fast before he loses all his precious equity) for your current use isn't it? cos there's no demand is there? :rolleyes:

Doesn't mean it's not right for anyone to buy btl if they have good reason to right now

Everyone's investment situation is different, and personal to them - you don't know the OP's do you? so you are not in a position to judge anything more here than the general state of the market as you see it......

You seem quite good at the old double dutch, I'll give you that.

I do hope your rent goes up!!

_Andy_

Guys - the OP was asking advice on the mortgage not whether it is or isn't a good idea to purchase a BTL property.

jorichste

sorry if i'm totally wrong, but could you remortgage your current home rather than btl, then use the cash to buy btl???

Newbird

Some lenders will advance you a re-mortgage without asking what the funds are for, others will push you onto a BTL product (as opposed to a straight remort) if they get a whiff of BTL being the re-mortgaging purpose..IMExperience anyway...

Soz for going off topic OP n Andy - twas LL that started it! hehhe