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Stuart Phillips

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About Stuart Phillips

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    Obsessed member!

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  • Location
    London & Leeds
  • Areas I invest in
    North East
  • About me
    Interested in technology, food & wine, anything sci-fi and distopean
  • My skills
    Residential mortgage broker, BTL broker, Commercial and bridging broker.

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  1. Cheeky beggar! If its a specific refurbishment BTL product, they do that internally. The broker gets paid a procuration fee twice, so they are already very lucrative, but they dont do any work for the second part. If its a bridge to start and a remortgage afterwards then fair enough, but £1200 broker fee is still way excessive for what is pretty straightforward stuff. For comparison you might pay that kind of fee if you have heavy adverse or you are doing commercial or development finance. Seriously time consuming specialist stuff. I'd never advocate finding the cheapest broker,
  2. There isnt really a minimum for self employed, however some lenders appear to be restricting their affordability for the self employed. NatWest is a great example of this. Input your details and then change the "is self employed box" and you can see the difference. It would be strong. Its never a guarantee, but as far as lenders are concerned this would be considered the lowest risk, i doubt you would see much benefit past this. Lenders dont share their score cards though so no one can really know. Yes. The requirement for 2 years accounts is to show the stability of tha
  3. Both you and your sister would need to be on the mortgage jointly whilst you are both on the title. If she doesent want to be on the mortgage then you would need to buy her out completely. So you could both raise the funds required to buy your sisters share with a mortgage, and assuming it meets lender criteria and the rental is sufficient, the solicitors would handle the transfer of equity when they handle the mortgage. Be aware though that your sister would then be 100% liable for the mortgage liability too. How you handle giving her the money and making the mortgage payments i dont know. Sh
  4. Hmmm. Not sure thats going to endear you to anyone given you have £90k sat in the bank, and another £50k a phone call away! If its not declared to HMRC then you dont have any income. If you dont have any income then borrowing from a mortgage lender will be zero. Once you do declare youre income then there are some mortgage lenders who will consider 1 years accounts, but most want 2 years. So thats 2-3 years before you can start talking to mortgage lenders. Have a read: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/877263/CC-FS11.pd
  5. If personal debts are excessive comapred to income then yes, it can cause declines. Some lenders are more tolerant than others and theres no clear line, but its generally not an issue i watch out for. I presume that personal loan affordability typically limits you to within what a lender would consider excessive. Not a conclusive answer but just keep it sensible and it shouldnt be an issue.
  6. Its certainly common, so much so that some lenders actualy have hybrid rental ICR's based on this ownership. The bigger % owned by a lower rate tax payer the more you can borrow. As far as the mortgage is concerned you are both 100% liable for the balance, so bear that in mind. Its likely a tax advsior has recommended this so take some advice from a solicitor as well, because you are essentially gifting your wife some of that deposit you are now 100% liable for. worst case scenario, consider if you divorce, who gets what? As long as you are fully informed about the pro's and cons from a l
  7. Its purely commercial. The lenders know you are benefitting and they want a slice. Companies price based on the value to the client, not just the cost to them, and they will have done the maths and determined that clients will accept a higher rate if it means they save that and more when it comes to filling accounts. Limited company mortgage have always been about 1% higher than usual, and if anything the difference has come down over the years, although i dont spend my days tracking these things.
  8. Residential - If you are moving out and letting the property then you either need consent to let if you are fixed in, or you should remortgage to a BTL. If remortgaging releasing some money is dependant on the rental income, if that supports it then theres no reason why you cant do that at the same time. Interest only is the default for BTL and lenders wont have any issue with that. If you are tied in on a residential deal and are getting consent to let then i doubt the lender would be keen on switching to interest only, but you can ask. BTL - Your existing lender may be happy to simply s
  9. 1) The 2 directors own 100% of the Ltd company (75%/25% split) - will lenders want them to be personal guarantors? Yes, in almost all cases. If the LTV is very low and the company has a few years history then you might be able to move away from personal guarantees, but to start assume this is unnavoidable. 2) The Ltd company has equity in their office unit - could this be used instead of personal guarantors? Unlikely. We are talking about standard BTL mortgage companies here and they dont have the appetite or ability for charges against other busineses and other complex arrang
  10. If its a question of risk then you're not going to get much help online, everyones attitude is different. You do need to get some advice though, which considers your circumstances and attitude to risk and allows you to see the pro's and con's. I would map out a few scenario's. Buying 1 properety at 50%, 2 at 75%, repayment, interest only, find some likely properties and put all the numbers to them and then have a chat with an accountant and a broker to see what the tax and finance costs will be. Then you can balance the potential returns with all the things that might go wrong and make so
  11. You have a catch 22 situation im afraid. Residential lenders wont take the rental income from a property thats your primary residence. BTL lenders wont do a mortgage on a property that you live in. For regulatory reasons they need to keep the two ring fenced. Thats not to say no one will lend you money against it, but it wont come from a mainstream UK mortgage lender.
  12. Interest only isnt too difficult if you have the collateral already. That is either plenty of equity in the residential, £250k or more and under 50% LTV, or equity in other property, such as a BTL portfolio. The equity usually needs to be 30% - 40% in excess of the IO mortgage. On residential IO you will often find you need £75k income or above too though. You can always consider Part and Part. You take the max IO mortgage permissable and the rest on a repayment. This can give you the benefit of cheaper rates whilst still increasing your cashflow. Residential and BTL is considered ve
  13. I think its very unlikely you will find anything from a standard BTL mortgage range. You might need to look at commercial finance in that case.
  14. I wouldnt expect it to change because the limited company doesent actually give you any "limited liability". The assesment would be the same as personally, with some added due diligence on top for the company.
  15. Yup, they should have asked. Its generally a tick box on a lender affordability calculator, or has to be taken into account like a personal loan premium and will affect affordability.
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