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mortgage advice needed

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  • mortgage advice needed

    Hello all just registered on here and here is my situation:

    I bought a property back in 2010 with the intention of selling it after a refurbishment. This didnt happen and i rented it out for £425PCM last october.

    I own the property outright (no mortgage on it) but i lent £15,000 from my mum and dad to do the work. I have also just bought a 2 bed flat to live in and lent a further £11,000 for the deposit from my mum and dad.The flat is in my name and my mums name. We combined income and the term is 16 years due to the age of my mum. The £425 more than covers the mortgage on the flat.

    I want to remortgage my house and pay mum and dad back all money owed. Also there should be enough for a large deposit on a BTL property. I recently had a bad experience with the mortgage works. They offered to lend me £40500 on an interest only basis and later cancelled their offer as my house has to be let for a minimum of 6 months. I lost the £365 valuation fee and the £499 i payed the mortgage broker for a mortgage i never got!!!! i think i was robbed specially by the broker who refuses to pay me back the £499. He could have told me i had no chance of getting it in the first place!

    Anyhow my plan is to remortgage the house, pay mum and dad back, use the leftover money to buy a cheap property on a BTL basis and use the rent to pay both mortgages. I want to keep chipping away at the capital on the interest only mortgages so i wont owe the full amount at the end of the term. I would appreciate any advice.

  • #2
    Re: mortgage advice needed

    First of all, the Broker should have checked how long the property had been let for and selected the Lender accordingly – if let for less than 6 months the Lender may class you as a 1st time landlord however even so, if you’d owned the property since 2010 however, you still fit TMW criteria and they should have been able to offer you a First-time Landlord product, if they did not; why?

    You can make capital overpayments with many Lenders each year, this varies from 5%-10% of the capital balance without any penalties or additional interest being charged – you could opt for a repayment mortgage as long as this is affordable, however if you’d like to have the rental income and then decide whether you’d like to overpay option 1 would fit best.

    Lastly, is there a reason the Broker chose TMW? Your gross income from employment or self-employment is important as this would impact upon what Lenders are available to you.

    Any further advice, feel free to drop us a message.

    Thanks
    Ascot Mortgages
    www.ascotmortgages.co.uk

    Comment


    • #3
      Re: mortgage advice needed

      Thanks for your feedback. I am not sure why they didn't offer me the first time landlord option they just cancelled everything after I recieved the offer. The reason the broker chose TMW is because they had good rates and you don't need prove income. My income is low and I know alot of lenders criteria says the applicants income needs to be £25k.

      Do you think I should wait until the tenants have been in 6 months or can I apply now to any other lenders?. Again my sa302 is only 9800 for last year and 9100 year before. Any advice or suggestions would be much appreciated I just want to get things moving now if at all possible.

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      • #4
        Re: mortgage advice needed

        No problem. If your income is under £10k pa and have no lettings experience, there aren't any other options other than TMW. Aldermore and Kensington can consider applications with a low minimum income but they need experience.

        Essentially your broker should have clarified your position with TMW and chosen the correct product in the first instance - maybe you could contact your broker and see what information you can obtain from TMW as to why you were declined.

        Hope this helps.
        Ascot Mortgages
        www.ascotmortgages.co.uk

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