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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 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?
  2. 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.
  3. I would agree that not putting all your eggs in one basket is a good idea. I would also add that buying two for now is better than buying 3 or more, as lenders start to get concerned when someone is buying "too many" (which often means 3+) within a short space of time. Finally, buy the properties while you're still here, have income to prove, bank statements to show your usual household spending, as most of the BTL lenders are quite conservative and like a vanilla background for the investors. Sure, you can get a mortgage without earned income, while you're not in the UK, etc. (we deal with clients who have these circumstances), but it would just limit your lender options, increase the interest rate and complicate things unnecessarily in your case.
  4. You could consider a few things: if you are able to make overpayments, then most deals allow 10% overpayment per year. By reducing the mortgage balance, you'll also limit the increase in your monthly mortgage payments at the time of remortgaging onto a higher rate (or if you're reverting to the SVR at the end of your deal term). You could also potentially take a longer mortgage term (and pay more interest overall) or a partially or fully interest only mortgage (and not reduce your mortgage balance as fast or at all through your monthly payments) when you remortgage, but these are all subject to T&Cs and have their pros and cons, so it's not a straightforward decision.
  5. We all wish we had a crystal ball... The above dilemma has flooded our inboxes since the base rate started its climb in Dec21 - I lost count of the number of clients asking whether they should remortgage and pay the ERC. Then again, it's impossible to say how bad the situation will get before it gets better. Interest rates have risen massively since Dec21, and yet, lenders are flooded to the point that a lot of them temporarily stopped lending or restricted their offering in recent weeks. On the other hand, there are reports of reducing property sales/prices/mortgages and lenders have targets to reach, so anyone's guess whether you should take a hit or take a risk... Not sure if this post was of any help, but there you go, no one can really tell you what to do, it will have to come down to your personal preference.
  6. Hi there, You may want to check with the estate agent or the council what the property's use class category is. For reference: https://www.planningportal.co.uk/permission/common-projects/change-of-use/use-classes You may also want to speak to the council and/or your solicitor regarding the use class change, if it becomes necessary. As a side point, you mention that it's your first HMO. If you also mean that you're a first time landlord, then your lender options will be limited, as not every lender offers HMO deals for first time landlords. However, if you mean that you own single let BTL(s) and this is just your first HMO, then there may be more lenders dependent on the other details of your situation. Finally, dependent on the lay-out of the property and the works you'll have to do to turn it into a HMO, you may need bridging finance to start with rather than a BTL mortgage.
  7. In response to your question, it is not illegal to have a private charge on a property, e.g. sometimes parents do it when giving money to their offspring. I also had it for an inter-family purchase, where the father was going to stay in the property after selling the house to the daughter and he also had a charge put on it, so the daughter couldn't sell it from above his head without his knowledge and agreement. In short, I'd also question the intentions and would be inclined to refuse the charge and if they insist, just look for another property.
  8. Hi, The lender options will depend on a long list of details, the property being a student let in a low owner-occupier area is just one of them. I have clients who own student lets near universities and one of the lenders that we use is Kent Reliance. Alas, they don't deal with clients directly, you'll have to go through a broker to get their mortgage.
  9. Hi Ben, Happy to help, we deal with a fair amount of expats and foreign residents even from Australia. I've sent you a PM with my contact details, if you're still interested in having a discussion.
  10. Nothing to do with competency. There's not enough information in OP's message to give advice. He will have to speak to a broker, who can then give advice as appropriate.
  11. Hi Ben, both cases were submitted in Feb22, so even if they agreed to lend when there was a schedule in place (or in my cases, where the works were already underway), they don't seem to be acting on it...
  12. Further to Stuart's points, I've had a Barclays and a separate Santander application recently, where both buildings were undergoing works to change the status from B2. Both lenders insisted that the works were completed and a revised EWS1 form was issued before they approved the mortgage.
  13. Hi, There are a few things to bear in mind. By the sound of it, your move is a few months after your current deal ends. As you currently live in the property, any new deal would have to be on residential basis, which doesn't allow renting out the property, unless you ask for a consent to let 6-12 months after the new deal started. If you ask for it earlier, the lender will likely refuse it, as their argument is that you should have reasonably foreseen the move and should not have taken the residential deal... If you were to take a new deal and then pay off the mortgage (by using cash or by remortgaging to a BTL deal) after your move, you'd normally be hit by an early repayment charge (ERC) unless you remortgaged onto a deal without an ERC. A lot of lenders don't offer ERC-free deals, so if your lender falls into this category, then you'd have to remortgage to a new lender. As we are now at the end of April and your deal expires in May, there's a good chance that remortgaging to another lender wouldn't complete by 31 May and you'd revert to the variable rate for a short time anyway. You could apply for a remortgage on BTL basis, if you can prove to the lender that you have a new home and job waiting for you in NI and you'd only complete the remortgage when you physically make the move. This does mean that you'd be on the variable rate between 1 June and your move date a few months later, but it avoids any issues with ERC, consent to let, remortgaging twice, etc. Having said all the above, if you were just to clear your current mortgage, you'd spare yourself all the above hassle and would be free to use the UK property any way you wish - as a UK bolthole for your family, rent it out long term or as AirBnB, etc. Not having a mortgage on it would make the new NI mortgage application simpler as well. In addition, once you moved abroad, your BTL remortgage options will be limited as an expat and the rates are normally higher than for a UK resident applicant. Does the above help?
  14. It's an interesting one - the freeholder provides a written consent, but not willing to change the deed. Wonder why? As the lender asked for deed of variation, I assume that you are buying the flat to rent it out and the lender may be worried that the consent could be withdrawn. This is such a corner case that it's not in any lender's written criteria, so without asking each lender whether they could consider the case, no one will be able to give you an answer. Of course, if anyone had a similar situation, it'd be interesting to hear which lender accepted it, but even then there may be a difference in the wording of the consent that was accepted and the wording in this case... but at least it'd give an idea who to approach.
  15. Hi there, Whilst your information is not wrong, you're too early for any advice unless indeed you have 20-30% deposit right now to start things off. By the time you have 1-2 years in the UK and 20-30% deposit, the goal posts could easily change, so you'll just have to seek advice at that time. However, you'll need personalised advice, not what a friend/colleague said about someone else, as you'll never get the fully story and your situation will always be different. Find a mortgage broker you feel comfortable with and they'll take you through the whole process.
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