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Lilla D

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    SW, London
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    Mortgage and Protection Adviser

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  1. Hi Shaun, A mortgage is intended to be for a few years, because that's how lenders can make money, securitise, etc. However, there are lenders offering - a no early repayment charge deal, so you could remortgage without a penalty after 6 months or - a bridging/refurb deal to start with before switching to a normal BTL deal with them or with someone else. You could also explore taking a bridging loan instead of a normal BTL loan to finance the purchase, which may be your only option anyway if the property is in a really poor state or has a missing cooker, etc.
  2. Update in Jan23 - just done a search in one of our broker systems for lenders' minimum mortgage amount and dozens came up with a figure below £100k even for Ltd companies. Worth speaking to a broker to find the best option for you, Jade
  3. Thank you for the update - indeed, good to know As you say, it might have helped that you actually banked with them and had another mortgage with them.
  4. Just to add to the "good to know" list: Barclays' mortgage offer is valid for 6 months from the day of submitting the application, not from the day of issuing the offer like most lenders. As such, the Barclays application shouldn't have been submitted until the first days of October, which would have meant losing out on the 3.18% rate... Instead, the broker should have recommended a different lender and deal to you amidst the chaos at the end of Sep. Re Santander, please do let us know, if you manage to avoid the ERC payment, as I haven't heard of any bank waiving their ERC when remortgaging to another lender ahead of time.
  5. Hi Mike, This message is probably a bit too late, especially in view of the interest rate jump at the end of Sep... I imagine that you have probably sorted the remortgage by now, but regarding the excel sheet part of your question, it really is a simple calculation: mortgage amount x interest rate / 100 / 12 months = monthly payment. (Doing this calculation backwards, I see that you were aiming to get 75% LTV based on the £130k value.) You'll then have to factor in your current mortgage's repayment admin cost, the new mortgage product fee, valuation fee, solicitor fee, broker fee, money transfer fee, SDLT, Land Registry fee (as appropriate) and you'll see what you get.
  6. Hi James, You have to start somewhere and it sounds like a good learning project. Once the refurb is done, the property is tenanted and you have owned it for 6 months, you should have a good selection of lenders available to get a BTL mortgage to release some of the money back to you for your next investment. Unless, of course, you plan to be mortgage free as a strategy. Everyone's different, so what is a good deal for one, may not be to someone else's taste, but that shouldn't put you off. There are many ways to skin a cat, so this particular deal is as good as any, if it gives you the experience and the income you look for.
  7. Just seen your message and you're certainly not alone. Regarding what to do - for now: nothing, just enjoy the fixed rate you have In the future: please speak to a broker (like us ) to discuss the details and the options available to you at the time when your fixed rate is nearing its end. There are lenders who are happy to lend to expats, those living in Norway and borrowing below £100k. The numbers are limited, granted, but let's see what can be done when the time comes.
  8. Hi Jon, Based on the rest of your message, the above sentence doesn't quite sound right. Did you mean that you applied for or received a mortgage offer for a 5yr fix from a new lender 2 weeks ago? Either way, if the application stipulated that you didn't want to start the new rate until the current one ended in Mar23, then you are not locked into this new 5yr deal. Even if you receive a mortgage offer, you are not obliged to take the mortgage deal. If you change your mind, you will just have to inform the solicitor acting for this remortgage, that you didn't wish to proceed. This would be prudent to do as soon as possible, but latest 2 weeks before completion is due, so the solicitor doesn't do the necessary preparations for completion only to be told that they wasted their time. You could apply for a new deal from your current lender (Natwest) or from another lender. You will just have to make sure that if you made a number of applications, the ones you don't want are aware of it, so they can close the case and don't attempt to complete the remortgage. Just to say, even if it sounds tempting to make a number of applications, once you make the 3rd one and any afterwards, you'll become suspicious as to why you make so many applications, so be mindful of this aspect.
  9. Hi Gordon, You're right: - expat mortgage rates are not the best - a lot of expat mortgages require min £100k mortgage amount - SVR is probably cheaper than a new deal, especially for a sub-£100k mortgage amount - some lenders won't accept Norway as your country of residence ...and there are a whole host of other considerations before a suitable lender can be identified...(e.g. your personal income situation, the property itself, your BTL portfolio etc etc etc) Ultimately, your options will have to be checked at the time when your fixed rates come to an end, as the mortgage market will likely change by then...
  10. Technically do-able, but a lot will depend on the details - as usual... I'd say speak to a broker, who will go through the details with you. There will likely be an early repayment charge to pay for settling your parents' mortgage and assuming that your parents will move out and you/your children won't move in, you could possibly get a BTL mortgage in the name of a Ltd company. If the above assumptions are incorrect, i.e. either your parents wouldn't move out or you/your children would like to move in, then scrap everything I said above, a residential mortgage won't be possible in the name of a limited company. Back to square one: please speak to a broker.
  11. Let's turn the tables: If you were the underwriter and someone was spending every month more than the amount they earnt, what would you think? Whilst we don't know your income details and the breakdown of your spending, so we can't really comment on the situation, indeed, there is a theoretical risk that the lender won't like you. However, some lenders use ONS data for general spending and/or don't ask for bank statements as part of the application, so you may escape the scrutiny of how many cheese rolls you're buying. In other words, it's not a black and white situation and you'll just have to discuss it with your broker as well as keep your fingers crossed...
  12. Hi jonim1981 Beyond the matter of being a first time buyer or not, a few more points to address from your original post: - repossession in the past - some mortgage lenders don't accept it within the last 6-10 years, while others don't accept it, if you had a repossession at any point in the past - live in Scotland - as you are probably aware, not every lender lends in Scotland - have 2 kids, some debt and not much deposit - indeed, it's not an ideal situation, but one that will be familiar to many. Whilst the Help to Buy Scotland scheme is now closed, there are some other options, where a smaller amount of deposit could get you onto the property ladder again. As all these aspects limit the lender options, you'll be best placed to speak to a broker to find the right solution for you and your family.
  13. In fact, you definitely won't get your deposit covered by the BTL mortgage, so you do need to have money available for the deposit from a different source. In addition, the mortgage funds are not "usually" only released on completion, but definitely only released on completion. The lender sends the money to your solicitor either on the day of completion or on the last working day before completion. In turn, your solicitor will send the money to the seller on the day of completion along with any additional deposit from you that wasn't paid at the time of exchange of contracts. Once the seller's solicitor confirms the receipt of these monies, the property key will be released to you. Just to be precise
  14. Hi Jay, You mention "Home Report" and Julia assumed that you meant "Homebuyer Survey" instead. The two are very different things. The Home Report is used in Scotland and lenders do use it instead of their own valuation, so if there's any problem mentioned in it, the lender will pick up on it. We had recently quite a few lenders, who imposed a partial or full retention until the damp issues were sorted out... The Homebuyer Survey is used in England and Wales to learn more about the property beyond what the lender's basic valuation report would show (if the lender even shares a copy of it). This survey can be arranged by you independently from the mortgage application and, indeed, it's not shared with the lender, so has no impact on the mortgage. Which one do you have?
  15. Hi Neo, Yes, it is possible to generate £2k pm net income with a £600k investment in property, but if you don't know where to start, then please spend some time studying the options/strategies, the markets, mortgages, etc. before you do anything. There are many ways to skin a cat and this is especially true when it comes to making money out of property. You'll come across people who promise the Earth and get-rich-quick solutions, so my advice would be to take it easy and don't let the money burn a hole in your pocket.
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