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Stuart Phillips

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About Stuart Phillips

  • Rank
    Obsessed member!

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  • Website URL
    http://www.aaltomortgages.com

Profile Information

  • 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. 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.
  2. 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.
  3. 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.
  4. I think the main metric for BTL lenders is debt to income, rather than specific amounts of personal debt. Personal loans are not taken directly into account when assessing affordability, however ive had a few BTL mortgages declined because the client had very high levels in comparisson to their stated income. Its not a common issue though.
  5. There are pledges to ban ground rents altogether: https://www.which.co.uk/news/2021/01/leasehold-scandal-government-pledges-to-make-it-cheaper-to-extend-leases-and-cut-ground-rents/ The reason its a problem for lenders is that once a ground rent passes a certain threshold (£250 in the UK, £1000 in Greater London) its considered part of the AST rules. That means that if you dont to pay the ground rent for 2 consecutive periods the freeholder can evict you like a tenant. That means the lender loses their security. Whilst its very unlikley someone would lose a home over a £500 bill, lenders
  6. I believe Interbay Commercial dont have a maximum number of shareholders, but thats the only one i know of, and i havent put anything like this through them to know what else they might ask.
  7. I think the only real option is a BTL remortgage with capital raising. You can get flexible deals that dont tie you to 2 or 5 years. That way you can refinance to a resi again or sell without penalty. You might need to do that after you have moved though to avoid it being considered a Let to Buy where an onward purchase is often (not always) required. It is dissapointing, but if you released equity first and were then declined for consent to let you would be in a tricky position. Without consent the mortgage contract is invalidated and that at best bars you from further borrowing with tha
  8. I never understand this. As a rule this kind of practice gets you kicked off lender panels. Halifax used to be the go to because their DIP was lightening quick and a soft search. They dont want to see millions of DIP's that never turn into actual business though, and will contact brokers who are doing this with a warning. Brokers used it as a litmus test instead of getting your actual credit report and checking it for adverse, but relly "excessive credit checks" would be more than a few, you can afford to shop about a bit without it looking desperate. That would further set alarm bell
  9. Yeah, i dont really see an issue with this in principle. Consent to let is designed for this very purpose, a short term let on a home due to relocation or inability to sell. I think you would want to be transparent about the intent to let in the further advance application because some lenders may not like the two together, you wouldnt want to complete one only to find it invalidates you for the other. As long as your present lender is happy though, i cant see a new lender having an issue with your situation, although some will want you to be an "owner occupier" as opposed to just an "own
  10. Anything under 100 years may start to become a problem for lenders, but it gives you enough time to figure that out for now.
  11. You are double counting the fee. Added to the balance, and then added again...
  12. @Adam Hosker I wouldnt suggest a PT because its less work for me, ive shown my working and the reason i'd make that recommendation. I do that work regardless of whether i was even getting the business or not. Its a better outcome for the client on the basis that the £200 saving will be eaten by compound interest, exit/admin fees (accord - £90) and funds transfer fees (2x £35) easily, without even factoring a broker fee. The fact its also the simplest option is a bonus. Chris is right to question the advice, because i dont think that broker has been transparent or even got the maths right,
  13. When brokers use their mortgage sourcing software there are two ways of dealing with fees. You either tick a box to add them to the loan and then work out total cost over 5 years, or you add the fees onto the total cost. You'd need to know which approach they take, personally i think the latter should be the correct option in every case. The former approach does ignore those fees stacking up because on a 25 year loan, you are only factoring about 20% of the effect of the fee and thats without considering compound interest over the term too. You can still add the fee, but you know the inte
  14. Luckily, on that calculation above, the rent you need for 75% of that is £623 a month... That might be helpful when negotiating because its only going to work for limited company BTL buyers, anyone buying in a personal name would need £722 rent to get a 75% mortgage.
  15. Its not surprising the tenants are not cooperating as much as you would like, they know the terms are likely to change on them and they may face having to find an extra £225 a month or move house and im sure they dont want any extra visitors than is absolutely nessasary. Lenders will take the lessor of the market rent or the actual rent, so you might find it affects what you can borrow. You are going to be limited on how much you can increase the rent if its on a rolling contract though. Without knowing the numbers (rental income and mortgage amount you need) i cant say if it will limit y
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