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Stuart Phillips

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Everything posted by Stuart Phillips

  1. I've heard a few people say they needed a DIP in order to get a Starling account. Perhaps just get a broker to forward something, it might be enoughto satisfy them. Alternatively find a decent client facing lender and do a DIP online. NatWest should be easy to do. I'd rate Starling much higher than Monzo. Starling is run by someone who used to be pretty senior in the BoE, and is doing pretty well. Monzo seem to be struggling to make a profit and id be cautious about their long term future. I use Starling for my business acccounts and Monzo for personal though. Monzo wouldnt give me a business account because its financial services, so i dont know what their application process is like.
  2. No idea. But I can tell you none of the figures for Aalto Mortgages ltd are true. I've no debts, cash is about right, and as a services business, I've no assets to speak of save a couple of laptops. I think it's a scam frankly.
  3. Unless you are a large limited company you dont publish anything that would confirm your net worth, however you will show which lenders have a charge over the company. Even then there are no figures published. You can use a virtual company, or as @EvolutionBlogger says, use your accountants address. Both are perfectly acceptable.
  4. Some lenders will class this as "Business Purposes" but not all and your broker should know which. Ive done mortgages where the proceeds are being reinvested into a property SPV. Many lenders are aware of the difference.
  5. It seems like an easy thing to demonstrate is a mistake. Supported by all the bank statements and payslips i would expect any underwriter to be able to discern the true salary. Just be open with the lender and explain the situation, im sure it will be fine, albeit with some extra admin.
  6. Paying off the principle is indeed the majr factor here. There are two methods: Savings and Investments - You can offset ainst equity in property elsewhere (such as a BTL portfolio), investments, ISA's, cash savings. You can generally use a % of the available funds, but cannot use future projections. This rules this out for most as few people have the cash set aside to cover the whole loan. Sale of security address - This is the method most people want when they talk about Interest Only on residential. There are a number of key caveats and lenders use some or all of these: Minimum of between £250k - £350k equity in the home at completion Minimum salary of £75k per annum, sometimes £100k joint Availablility of property in the area (they want to see that the equity available now is enough to buy a reasonable property for retirement. Max LTV of 50% - 60% - You will need a significant deposit. You often cannot mix the above two routes. You either need all the collateral or need to meet the sale of security criteria in full. So as you can see its not an easy option. If you meet most of the criteria above then it should be feasable, if not then its very unlikely. This is heavily regulated and lenders have little discretion on these rules.
  7. Have you spoken to your lawyer on this? Will you even take a hit if what you describe can be be considered misrepresentation?
  8. Yeah, theres something else going on. When the offers are produced, the client, broker and solicitors all get their own versions. The solicitors need their specific copy because it also contains their conditions that the client doesent need to deal with. Lenders do sometimes post offers still, in 2022, bizarely, but generally they can be emailed, faxed and often just downloaded from a common portal. If the broker knows the offer exists you can get it to a solicitor the same day if you press hard enough. Sometimes if you change solicitor after offer that can take a week or two to turn around, and bear in mind that all lenders are a solid week or two slow currently. Ask the agents, in writing, if they have had sight of the buyers offer document? If they say yes, then ask them to see it. Its not yours to see, they can say no, but any buyer keen to keep you onboard would surely show you they are good for the money and the fault is not with them...
  9. I get the same on broker forums and conferences. Theres always someone who does 100 mortgage a month (and still finds time to post online or attend conferences!) or charge £3000 broker fees without pushback because they "know how to present the value of the proposition" or othersuch LinkedIn nonsense. The answer? Ignore it all. People are in business for different reasons, prepared to risk or sacrifice different things and mostly they are simply lying, to put it politely. People doing well dont generally need to tell people about it... I have clients who make as much from 3 London properties than some with a dozen townhouses in the North East, the former seem far more relaxed! Many dont have the cash to buy in London so you just have to work with what you have. To me success is the value you add rather than what you end up with, and no, the irony of that Linkedin nonesense statement isnt lost on me!
  10. Sounds like this person just wants a stake in future property inflation, without the cost of upkeep in the meantime. Are they giving you a £75k discount on market value, and if so why? If not then why should they keep a stake in something they have already been paid for in full?
  11. I dont know the answer, if its a one man broker, it could be a hundred reasons, some reasonable, some not. However, if i miss an email by a week, which can happen, and then contact the client to apologise i do so with the full assumption that they will have gone elsewhere. You certainly do not owe them any loyalty at this point! If they are sick or on holiday then you'd at least expect an out of office or someone picking up their emails. If they are too busy then inded, a simple email apologising to say they cant accept new business. Ignoring you is not OK. I work on the assumption that every new client i talk to is probably talking to some other brokers and that i wont get every deal, but when they complete my factfind, send me documents etc thats the point i would consider them 'my client', and that you should assume that they are getting the job done for you. You dont want your personal documents floating around on the internet and would be within your rights to request they are deleted from their system. The broker only need keep docs for clients that have completed a mortgage, otherwise normal GDPR rules apply. If this were me i'd send one final email stating that unless you recieve a response immediately you will have to go elsewhere and will request all your data is removed from their system.
  12. A lot of people would argue that getting to 30 without leaning on credit is a pretty good thing... That said, it means you dont have an idea of how they handle credit or commitments. Also the search that your agent did simply references the public aspect of credit, ie do they have CCJ's, bankruptcy or fraud flags, it wont provide an actual credit report. I dont know how being missing at voters roll or not having any references got through, but im almost certain that the terms you signed will protect the agents and reference agency from any and all liability.
  13. Yes Yes No. Talk to your advisor first, it would affect how much you could borrow.
  14. To put your mind at rest, any new borrowing will need an EWS1 form anyway if your building meets the requirements. If you have cladding that's a problem, zero lenders will help until it's rectified. I wouldn't worry about this, but if you're concerned just ignore it. If they decide to offer support, you'll still hear about it.
  15. Hi Paul Are you looking to move these properties into an LLP? If so i would say your first port of call should be a tax advisor who can go through the costs as its not a transfer, but a transaction. That means SDLT and CGT may be payable. SDLT cant be avoided, but you might benefit from having been resident there when it comes to CGT. In regard the mortgages specifically, you can use an LLP as long as it meets the lender criteria similiarly to an SPV Ltd company. For brand new purchases, or a purchase from yourself this shouldnt be a problem, as long as the tax payable above is palatable!
  16. Hi Cristina Im afriad lenders do not like BTL and Residential lending to be combined in any way. Further, you'll find it quite difficult to find a Residential lender who will accept a property with an annexe if it can be used as an AirBnB/Holiday let. If its not been developed then outbuildings are less of a concern, but still a complex factor, especially if they could easily be converted. It would also be almost impossible to get a residential mortgage without income you can prove either.
  17. Lenders dont like it at all. It very much depends on the amounts and frequency. It also very much depends on the LTV, affordability and other criteria how important it is. If you are buying at the max you can borrow, at 90% LTV and there are other factors that make this risky then yes i'd expect lenders to have concerns about gambling transactions. If you are at 60% LTV and well inside what they think you can afford then i doubt they will even look that closely. Not a very helpful answer i know, but at this point you might as well wait and see what they say.
  18. Yeah, if you have £22k on paper from UK Land and Property there are lenders that will accept this. You wouldnt be able to use expenses but that shouldnt be nessasary. Obviously its also subject to valuations, credit, and other criteria, but only having income from property shouldnt be a barrier in and of itself.
  19. I think anyone taking on a trainee is going to build in some protection for themselves anyway and it would really depend on the offers available. I started with a large estate agent, now the largest since the two merged, and they are very corporate, very sales driven and was expected to play some nasty games to win business, which is why i left quickly. Some of the robo advisors like Habito, Mojo, Lodon and Country might be a good bet because their tech is excellent and you'll need that to make it managable and they have deep pockets and are hiring aggresively. Maybe then look at a smaller broker on a self emplyed basis where you share the commissions and see if it makes sense to go alone. Personally i love running my own businesses, but its not for everyone, theres little security. I think the bigger consideration is how you would build a business down the road. Advertising and lead generation is extremely expensive, theres simply no way i'd make a solid profit if i were buying in all my leads or paying thousands a month for CPC ads. Organic marketing is crutial (answering questions in forums! cough cough) but takes a long time to build. I think if i were to start again i'd allow about 2 years of consistent marketing activity on social media, forums, websites, youtube/tiktok whatever and blogs to get to the point where i was bringing in the 30 - 40 new leads a month i'd need. I'd need a big pot of money to cover those costs, my admin and my marketing support (as thats a full ime job) From there you have renewals and referalls where your conversion rate becomes far better. Brand new clients i convert at 3:1 on average, referals and repeat business is close to 1:1 and so in terms of time and efficiency thats where its at. Its taken me 10 years to get to the point where new business essentially manages itself. Add to this the fact that mortgage brokers are going to be a thing of the past. Technology is such that its only a matter of time before AI based systems can deliver better outcomes for clients than brokers can, and the technology that joins the dots is nearly there to make the actual admin a thing of the past. I believe that niche brokers will remain, but a large part of the vanilla market will dissapear to purely online systems much like car insurance for instance. If you want to go DA i'd look at SimplyBiz for their support in getting the application through the FCA, thats a hell of a process, costs £3-4k to apply and then takes 6-12 months to get authorisation. The costs of a DA are pretty high too. There are some good networks out there, but thats a whole other thread i think and Cherry is the place for that. Good luck! Its a thankless job.
  20. Try cherry forums. There's usually DA firms hiring who would consider you if you're done the job before. I only worked for an estate agent for a few years before I went self employed, and then a few years later went DA. I also only work 9-5 with the odd exception. The vast majority of clients can spare half an hour during the day to discuss their mortgage and technology does a lot of the heavy lifting these days. The days of driving to clients and sitting in their house for a few hours is long gone.
  21. New charts are very telling: Expect average rates to keep trending upwards. If you are sat on a variable rate, either residential or BTL now would be the time to secure a low 5 year fixed rate as the rates we have seen will not be coming back... Also interesting to see the lowest 5 year fixed personal rates exceeding the lowest rate 2 year company rates. Keeping LTV's under 60% makes a real difference to financing costs.
  22. Have a look at land registry data and see what shows on there. I'd use Mouseprice for that data. Im willing to bet there are some properties in a 1/4 mile radius that have sold for less and thats whats influencing the decision. The other reason is likely oversaturation, which is very common in Liverpool and Manchester. Where less than half of the ownership is owner/occupier, ie private residential ownership, lenders are reluctant to agree to the security because they dont want to be limited to only BTL investors should the properties be repossessed. You can try an appeal with the lender if you can provide 3 - 5 good comparisson properties within 1/4 (maybe 1/2 at a push) miles radius and of the same style, spec and size within 3 - 6 months. If the average of those isnt vastly greater than your property i expect the result to be upheld. There is absolutely no incentive for surveyors to correct their work, so you will meet stiff opposition. If they agree an appeal it shows the lender they didnt do their job right in the first place, and will encourage further appeals, which is work they are not getting paid again for. You could simply try a different lender, but due to the nature of the admin process, theres no way to ensure the same person doesent visit just on behalf of a different lender. If thats the case they will simply resuse their past comparisson properties and the result will be the same. Not the news you wanted, but ultimately not something you can influence, which is something very much, by design.
  23. I think i misunderstood. I assumed you'd been paying the BTL mortgage from a personal account. Are you asking if you can claim your personal mortgage payment as an expense? Almost certain you cant, but check and let us know!
  24. Depends on the lender, but yes ive seen 6 months mentioned pretty often. You'll just need to call them and explain, im fairly sure they will be pretty open to it.
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