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  • FIRST POST
    • FTB-James
    • By FTB-James 13th Jan 19, 12:03 PM
    • 19Posts
    • 4Thanks
    FTB-James
    Remortgaging from residential help to buy mortgage to buy to let
    • #1
    • 13th Jan 19, 12:03 PM
    Remortgaging from residential help to buy mortgage to buy to let 13th Jan 19 at 12:03 PM
    We currently have a house with help to buy on it and a residential mortgage.

    Outstanding mortgage 83000
    House value 140000
    Help to buy would need a repayment of 28000

    This would mean we need a mortgage of 111000 on a house valued at 140000 ( 80% LTV)

    Has anyone remortgaged and used the additional borrowing to pay back help to buy and change the home from a residential to buy to let mortgage

    Asked current lender and they said no although they did say apply for consent to let (which we have)

    Our mortgage advisor is struggling to find a suitable mortgage at the moment
Page 1
    • Caz3121
    • By Caz3121 13th Jan 19, 12:48 PM
    • 11,847 Posts
    • 7,726 Thanks
    Caz3121
    • #2
    • 13th Jan 19, 12:48 PM
    • #2
    • 13th Jan 19, 12:48 PM
    they did say apply for consent to let (which we have)
    Originally posted by FTB-James
    you also need to get consent from the HTB agent which may be a sticking point
    • kingstreet
    • By kingstreet 13th Jan 19, 1:43 PM
    • 34,901 Posts
    • 18,997 Thanks
    kingstreet
    • #3
    • 13th Jan 19, 1:43 PM
    • #3
    • 13th Jan 19, 1:43 PM
    you also need to get consent from the HTB agent which may be a sticking point
    Originally posted by Caz3121
    Why, when the HTB loan is being repaid?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • FTB-James
    • By FTB-James 13th Jan 19, 3:09 PM
    • 19 Posts
    • 4 Thanks
    FTB-James
    • #4
    • 13th Jan 19, 3:09 PM
    • #4
    • 13th Jan 19, 3:09 PM
    If we are repaying the help to buy they don’t need to give consent to rent it out

    What I’m asking: has anyone done this and if so which mortgage company did they use?
    • kingstreet
    • By kingstreet 13th Jan 19, 3:43 PM
    • 34,901 Posts
    • 18,997 Thanks
    kingstreet
    • #5
    • 13th Jan 19, 3:43 PM
    • #5
    • 13th Jan 19, 3:43 PM
    An 80% LTV BTL mortgage is going to see a smaller pool of potential lenders as many 'top-out' at 75% and success will be determined by how the renal income stacks up. Do you have a rent assessment from a letting agent?

    Since lenders started working to the PRA rule changes, many have moved to a rental requirement of 145% of the monthly mortgage interest assuming 5.5%pa.

    On a 111k mortgage that would mean min rental income of 738 per month to make this feasible.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • FTB-James
    • By FTB-James 13th Jan 19, 4:16 PM
    • 19 Posts
    • 4 Thanks
    FTB-James
    • #6
    • 13th Jan 19, 4:16 PM
    • #6
    • 13th Jan 19, 4:16 PM
    Our neighbours house is rented at 700 and has been for two years. I think wed get 750 so can cover this

    The bit thats important is which lender will let us have 80% including repaying the help to buy element
    • dimbo61
    • By dimbo61 13th Jan 19, 4:34 PM
    • 10,179 Posts
    • 5,509 Thanks
    dimbo61
    • #7
    • 13th Jan 19, 4:34 PM
    • #7
    • 13th Jan 19, 4:34 PM
    So you will need a broker's help with this.
    They will also do a full financial assessment on you and your partner ? If a joint application.
    Where are you moving too and why ?
    Are you buying another property to live in ? 3% extra stamp duty on top of all the other costs.
    Do you have a deposit and savings to cover if you have a void ( No rent )
    Your Tax situation ! Higher rate taxpayers ??
    Location, type of property , parking, how close is it too the shops, train station, trams/buses etc.
    You are starting a new business so may need a business plan to show a lender.
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