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lilla d

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About lilla d

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    Streatham, London
  • About me
    Mortgage and Protection Adviser

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  1. Hi Carolyn, Just seen your post and as I have just sorted a mortgage for someone in a similar position, I might be able to help you as well. Please feel free to send me a private message, if you haven't sorted the mortgage out yet.
  2. Hi TT, If you don't think your current broker can manage the situation, then it's time to change brokers, so not sure why you're hesitating? And yes, a broker familiar with the above options can make use of that extra £14k left in the company in the previous year or even use your tax before profit, which would normally have been higher than the profit after tax that you took out in full in the latest year. Just a word of caution though - lenders are now asking extra questions around the company taking Covid-related grants/loans and how your current business year's income is look
  3. Further to Stuart's point, indeed there are lenders who can use salary + profit instead of salary + dividends, which can be useful, if you don't draw all the profit out as dividends. In addition, some lenders will use profit before tax, while others use profit after tax. Some can use the latest year figures, while others will average the last 2-3 years. And then there are some lenders who do salary + dividends as the default option, but if you own 100% shares in the Ltd company (or you and your partner own 100% together and both of you are on the mortgage), then a broker can request assessment
  4. Hi Ian, The lender chosen for your purchase is based on - the property (e.g. an ex-council flat with open corridor access or a new build flat in a city centre location above shops will have different lender options from a "normal" 2bed semi); - the expected rental income (lenders stress test the rental income in different ways dependent on a variety of factors); - your personal situation (e.g. whether you own your resi home, how many BTL properties you already own, what your income is like, your credit history, etc.); - the deals available at the time of your purchase
  5. Hi Simon, You're right in assuming that there are issues with renting the property to a relative, especially where the relative is the current owner of the property and would remain in the property as a paying tenant... Most lenders don't allow the seller to stay in the property and rent it back. I appreciate it that your dad is only a co-owner, but still. Then there's the problem of renting to a relative, which many lenders don't like. However, it may just be possible with a few lenders, so I recommend that you speak to a broker about the specifics. There are quite a few
  6. Hi guys, Finally I get a chance to give an update. Having spoken to various lenders and specialist BTL brokers, the consensus was that lenders don't normally have this LTV condition - some banks even cited the rule of Treating Customers Fairly, i.e. as long as the client pays their mortgage, they wouldn't penalise them just because the property value happened to reduce. Only two lenders had no such concern and indeed reserved the right to do something about it, if the LTV increased. The people I spoke to also said that they had no knowledge of ever enforcing the condition, but o
  7. Hi Dino, Thank you for sharing it, interesting to know that there's a lender who says it in their small print. To give realistic feedback to people, however, it would also be useful to know how many times banks have actually requested people to lower their LTV, provide extra collateral or call in a mortgage. As you say, it makes zero sense for the lender, so even if a bank reserved the right, would they do it? Highly unlikely. I've never heard of it, but just out of interest, I'll ring a few lender contacts tomorrow to see what they say and post an update.
  8. Hi there, You definitely need a solicitor for a remortgage when changing lenders and mortgage type. Even if you were to go direct to a bank, you'll still need a solicitor. When you remortgage to a new lender, sometimes the lender gives the solicitor for free, sometimes they don't and you have to appoint one. They - check the Land Registry title deed, - when you own a flat, they would also check the property lease and some details with the freeholder/management company to ensure that the details are acceptable for the new lender - on completion, they request a settlemen
  9. Hi Diphotex, I've been a broker for nearly a decade and out of all the above, the only part I can agree with regarding the risk of calling in a mortgage is this: The bank would NOT call in your mortgage just because you go above the original LTV. They may not give you a new deal and you may not be able to remortgage to another lender either, so you may be stuck on the SVR, i.e. become a mortgage prisoner, but as long as you make the monthly payments and use the property as per the agreed use (i.e. the BTL property is rented out or a resi is property is lived-in by you and/or your
  10. As your friend is an EU national living in the UK, it's not a specialist mortgage, certainly not expat. Granted, the lender options will be limited when someone is looking to buy for over £1m, especially if they don't have a big deposit. The reason behind is that lenders have a max amount that they are happy to lend on 85-90% LTV basis. For example, HSBC would only lend 80%, when someone would like to borrow £500k-£1m. And of course, there are a million other factors that lenders consider Considering that I'm a broker and regularly deal with high value purchases, would be happy
  11. Hi Stefan, Technically, you could do what you propose, i.e. you could do a product switch to a new tracker deal, which doesn't have early repayment charge and then redeem it when you sale completes. If your product switch request is processed this week, then you could be on the new deal as of 1 Aug, otherwise it'll switch on 1 Sep. And no, once you switched, you switched, you wouldn't be penalised, if the new deal doesn't have an early repayment charge.
  12. Hi there, I'm afraid I'm not sure whether your friend lives in the UK or not, as I'm not sure whether you put the bold comments into the quoted section or they were part of the quote. If your friend lives outside of the UK, has never had any connection to the UK, then the options will be very limited, but not necessarily impossible and indeed he/she should seek broker help. If your friend lives in the UK (even if for less than 3 years), then it's still a good idea for them to speak to a broker, but there will be more lender options. OK, scrap what I've just said above, as I
  13. Hi Jay, This information is correct: - until Apr 2021, it's ok that you're not a first time buyer - as of Apr 2021, it won't be ok for a Help to Buy purchase, so you won't be able to secure a property with the Help to Buy scheme, unless the rules are changed in the meantime
  14. Hi Dan, I'm a mortgage broker, so not entirely unbiased when I recommend that you find a mortgage broker to help you through this purchase. I say this, as I can see how much information/help you'll need during the process and the internet/friends/family may not be the most reliable source (as eager as everyone will be to offer their opinion/experience/advice). A broker's job is to advise you based on your specific situation as well as based on what is available on the market and then arrange the most suitable mortgage for you. In terms of costs, the good news is that you have massiv
  15. You would technically be a first time buyer when you buy a property in the future for yourself or for investment purposes. However, the mortgage you'll have with your friend will be counted as a credit commitment and will potentially reduce how much you can borrow for your own property. Does this answer your question?
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