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Everything posted by RogerH

  1. We refinanced our £560k home to raise £100k with the intention of using the cash as deposits for BTL properties. Then Coronavirus hit so we put things on hold. However, noticing that many sound FTSE100 and 250 companies now have cheap shares we've started using some of the cash to invest in shares, anticipating a stock market recovery. With any luck we can therefore increase our potential deposits ready for when the property market perks up.
  2. Hi Rafael, I got a quote from a broker for converting our home to a BTL. The best he could offer was 2.99% fixed for 5 years but only a miserly 64% maximum LTV. At that rate the figures didn't make it worthwhile, taking into account likely rental income and the funds we would free up for buying another property to be our new home. So I've pretty much abandoned the whole idea.
  3. I'm keen to quit my day job at the earliest opportunity and perhaps get a part-time job or preferably not work at all. My wife and I own our home, which has plenty of equity. I also own a flat grossing £825 per month rental income and would like to acquire more investment properties. We're planning on downsizing our home to free up some cash. Assuming I could raise at least a 25% deposit for a potential BTL property, do you think I would be eligible for a BTL mortgage if I had already left my day job, given that I've been in gainful employment for many years and have an excellent cre
  4. Thanks, Richard. I find it useful to think of the transaction like this (assuming I've understood it): The lender buys our current home (in a sense) for its market value but we retain legal ownership of it We hand 25% of the proceeds back to the lender (the deposit) and agree to repay the remaining 75% on or before some agreed future date (this is the 75% LTV BTL interest only mortgage). We use most of that 75% to buy another property outright to be our new home We let our original home to a tenant I'm assuming here that the amount the lender will lend is not depend
  5. Thanks for the reply, Simon. I shouldn't need a new residential mortgage as the plan would be to purchase the new home using the proceeds of remortgaging the existing one. Thanks for the offer of a chat, too.
  6. Could someone please confirm that the following is perfectly acceptable and reasonably straightforward: We'd like to remortgage our current home - which has a nice chunk of equity - to a 75% LTV BTL mortgage and buy another, cheaper property outright to be our new home. So, some of the equity would be used to purchase the new home and some would be needed for the BTL deposit. We would then of course install tenants in our original home. It only makes sense to me if the two transactions happen either the same day, or certainly within a few days of one another, because the purchase of
  7. I'd also like to get involved in flipping. This would most likely be on a 50/50 financial investment basis joint venture, and would have to be in a good area with solid buyer demand where prices are holding up at the very least and ideally increasing. Very much like the area where I live, in fact. If anyone is interested please get in touch.
  8. Dear Hubbers, I thought I might solicit your views on what seems to be an increasing trend. Namely, someone (often from London or the South-East) invests in BTL property in the North, which then means that money is effectively being transferred from the North - where it is arguably needed more - to the South. Of course, any modernisation undertaken in tired housing stock in the North (or anywhere else) can't be a bad thing. But the rental income is likely to be spent 200+ miles away and is not therefore helping the local economy. According to a comment on this thread ther
  9. I cashed in several pensions. Firstly I transferred two defined contribution pensions from previous jobs to a Self-Invested Pension Plan (SIPP) hosted by an on-line broker, so that they were sitting conveniently in the same place. Then when I hit 55 I could move them into drawdown status, meaning I could actually withdraw funds as and when needed, including a 25% tax-free lump sum. I also cashed in the pension from my current employer, resetting my pension pot to zero, but I'm still working and contributing to it. I've also started drawing two final salary pensions from
  10. Hi. I'm 56. Like Dennis I also cashed in some pensions to raise the deposit for my first buy-to-let property, which I should be exchanging contracts on within a week or so. I do have a day job but I'd like to ditch it at the earliest opportunity. I want to expand my fledgling portfolio asap but am struggling a bit for the next deposit. I might have to reluctantly remortgage our home in order to progress. I think the best strategy would be to do a flip to raise cash - that's assuming a potential lender is willing to go along with the idea. I would certainly consider a joint venture of
  11. Hi George. There are plenty of members better qualified to answer this than me. However, when I've researched multilets I've found that the lender will want the likely rental income to cover at least a certain percentage (i.e. 125% or more likely 145%) of the expected BTL mortgage repayments based on a single let. In other words they don't take into account the expected enhanced income you would get by letting out rooms individually. This might well not apply to portfolio landlords but I can't say for sure. Regarding your other question I dealt with a letting agent in H
  12. Hi Peter. I'm from near Watford and have also investigated investing in Coventry. I've viewed quite a few properties there already but always fall short in terms of raising sufficient finance. A few weeks ago I viewed a 4-bed HMO student property near Warwick University which, if I'd been able to find a sympathetic lender, would have netted me a bare minimum of £500 pcm and probably a lot more. That seems to be a favourable area because the university has a good reputation and the estate agent who showed me around - a former student there herself - claimed that it was i
  13. Hi Simon. I'm sure you're right. Actually I'd forgotten that I'd spoken to another broker (the one with the bridging loan info) who had found a lender prepared to consider a first-time HMO landlord. They didn't say which lender it was though but as I'd been a little discouraged by the bridging loan fees I didn't pursue it further. However I'm reconsidering now. Roger
  14. Marcus - I am in a similar position. i.e. no landlord experience but wanting to set up an HMO. Coincidentally my chosen area is also the Midlands. I spoke to a London & Country broker not specialising in HMOs and she was quite pessimistic. She said the only lender who might do it was Kent Reliance, but that the application process for the BTL HMO mortgage could take four months. Based on that I decided that the best strategy would be to use a bridging loan to buy the property and then refinance onto the BTL mortgage once the application was accepted and finalised.
  15. Firstly ... Hi. Secondly ... Have you investigated remortgaging your rental property with an interest only, buy-to-let mortgage? This would only be of use for freeing up equity if the value of the property were well below £100K, however, but, if so, your repayments would fall too.
  16. Hi All. Can anyone explain how a bridging loan to purchase a property works when finance is also required to do a refurb on that property? Is it just one loan, or is it split into two: one for the purchase and one for the refurb? Thanks.
  17. Hi. I suppose I fall into the category of anybody If I may be so bold: while you await replies from the experts I'd be interested to know how you managed the setup of your Bolton HMO from 200 miles away. Thanks for any info. Roger
  18. Stuart, James, mtg - A belated thanks for all your useful replies. I'm struggling to recall whether or not we were offered a reserve account. I seem to recall we had the option of using an offset facility, which for no reason in particular we never used.
  19. Paddy, Would it be OK to message you directly with a question or two? Thanks, Roger
  20. Thanks for all the positive and helpful replies. All good stuff
  21. We remortgaged our home a few years ago and I seem to recall that we were expected by the new lender to give a reason why. As their interest rate was much lower than our existing one at that time then the reason was pretty obvious. But am I required to give a reason for remortgaging? If so, what if I change my mind after receiving the excess funds (if any) and use the money for something else? The reason for asking is because I'm interested in remortgaging to raise a deposit for a BTL property. Would a lender take a negative view of this? What if I said I was using the
  22. I realise this topic is a little old now but I got i2 Analytical Ltd (based near Watford) to test three Artex samples from my home for the presence of asbestos for £25 each + £1 disposal charge + VAT. All three were negative.
  23. I am also interested in equity release. I hope it would not be too forward of me to also give you a call, Nathan. Regards, Roger
  24. Thanks, Jessica. I have already looked at a few properties in Coventry but that was before I'd really homed in on what I was trying to achieve. I'm finding that for a single BTL the profit margin is a little thin, but there are other possibilities, such as buying a property that has already been converted into two or more flats, where the yield is generally better than for a single BTL.
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