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Adam Hosker

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  • Property investment interests
    HMO's, Standard Lets, Finance
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    Finance, LHA Tenants
  • My goals
    Increase property portfolio and help others along that path.
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  1. It's not impossible @harvey34 but for most its impractical. As once you take out a loan for down payment, this decreases the amount you can borrow from a mortgage lender due to affordability. You have an extra monthly commitment. The lenders that allow a "loan" as a deposit for residence is also few & far between. There are other options such as Gifted Deposit from family/friends, or even loaned deposits but those are more rare. You can also look at the Help-to-Buy Scheme (or simular private schemes) that allow you to put a deposit down of just 5% of the property value. A chat to a mortgage adviser is the first place to start realy.
  2. The administrative burdon is that you will have to file accounts with Companies House, that means clean bookeeping throught the year keeping companys assets seperate from your personal assets. As such you will also need a seperate business bank account for the company. In addition to remembering you enter contracts as the company such as General Insurance, Mortgages, etc... In general thogh the Mortgages in a Limited Company are more expencive on Rates & Fees, compared to normal Buy-to-Let. In addition you have to sign a Personal Guarantee on each mortgage, this increases the cost as you need seperate legal advice from your company - it comes in at about £300. The mortgage lender will want you to have specific SIC Codes when setting up the company and not do any other trading activity, no putting window cleaning business income through it for example. Other than the above the mortgage underwriteing is the same as normal buy-to-let.
  3. I hear great things about SB Living in Leeds.
  4. Well there is a "sneaky" way that will tell you with 99% confidence. You can look up the property on Landregistry "Sold House Prices" index here: https://landregistry.data.gov.uk/app/ppd/search That will tell you if it has changed hands at least. It wont tell if the title has been updated, as in someone has got a new charge on the property. In addition to that you could sign the property up to HM Land Registry Alerts: https://propertyalert.landregistry.gov.uk/ Though landregistry is REALLY delayed right now, months behind.
  5. People still need homes in a lockdown. What are you worried about @slavica that will hinder you? Just look at the last one to see what you were or were not allowed to do, viewings for example were allowed to continue. You just had to open all windows, have hand sanatizers, social disance, etc.. The biggest "scare" in my mind if they halt rent/evictions again. As such you want to be confident you have savings to cover void periods where a tenants dont pay.
  6. That is the catch - what you purchased it for will be noted on land registry. If that was recent that establishes the value of the property in question. So you have to convince the valuer that you have done works and moved the needle. As such its not uncommon for landlords to provide a valuer with a Schedule of Works. Though given you ahve used TMW. I guess it was NOT recent as they dont do bridging finance? Plus otherwise you may have early repayment charges (ERC) to exit that mortgage early. Even after convinceing the lender, you have to ensure you use a lender that values on Market Value. Some will only go as far as Purchase Price + Works Costs or other intracacies. A good Mortgage Adviser will be able to point you in the right direction - such as the team at Bespoke Finance.
  7. A lot of mortgage lenders have such requirements but they also have a few weeks grace period. Check in with your broker again, it seems to me they are applying a strict interperation of the rule.
  8. As you outline Mortgage Lenders do not like Group Structures. Most though do not mind inter-company loans though, it useualy requires a letter from your accountant saying Trading Company will still prosper even if Property Company borrows the money.
  9. No - it is 'strange' that they have put a charge on your personal property. They typicaly only do this if you do not have enough equity (deposit) to put down on your Buy-to-Let, so they use the equity (deposit) in your home. If you buy anouther Buy-to-Let Property (and have the deposit, typicaly 20% of property value) then they wont put a charge on your property. (putting charges on property is not the norm). The solution to "take money out" is also the solution to remove the "charge on my personal property" which is to Remortgage. If you have paid off the mortgage there is no reason for them to maintain a charge on your residence. Hope this helps Matt.
  10. You should talk to an FCA Authorised Mortgage Adviser, such as Cyborg Finance on 01133 205 902 to discuss the intracities but I may be able to summarise. You are not a First Time Buyer, you own your current residence. You wont get any of the FTB benefits. If your current property is in need for renovation you "may" need to take out Bridging Finance, prior to getting let-to-buy (buy-to-let) mortgage on it. A Buy-to-Let Mortgage is only for the finished product, the mortgage conditions state that it "should" be rented out within days of completeing the mortgage. Not month(s) later after works.
  11. There are lenders that have a "no minimum income" criteria, so the £25,000 affordability threashold is not so relevent. As much as ensureing you can afford your lifestyle.
  12. Mortgage Lenders are used to this kind of seperation situation, they have specific products as well as 2nd home mortgages. As such majority will note that you may have financial commitments to pay the cost(s) for two homes. As such this will take a chunk out of the affordability, limiting how much you can borrow. Though concidering the mortgage is as low as £3k then it shoudnt be a huge. If you have financial dependent(s) that too will have to be taken into account on affordability.
  13. " it does not reduce the loan at all but only the interest payments you would end up paying" I think that is contradictory. Paying down your mortgage reduces the loan which has the effect of reduceing the interest payments, as the interest is charged on a lower amount. "Does this mean that an overpayment of £498" What this is "normaly" describeing but not having read your offer. Is that they give you an "OVERPAYMENT ALLOWANCE" so you can paydown your mortgage by say £2,000 a year but if you overpay by £2,001 they will start chargeing you Early Repayment Charges (ERC). The ERC's are the 5% in year 1, etc.. that you talk about. "After the 5 years I go on a variable rate. A bit worrying since I guess I would want them to offer me a decent product, but aren't I basically at the lenders mercy in this scenario?" No. If the lender offers a Product Transfer you can take that in 5 Years to get a lower rate. Though you shoudnt jump at that option but instead look at the whole of the market to see if there are any remortgage opportunities avaliable that would be better for you.... It's also at this point you can pay off a lump sum off your mortgage. " Would the fees for overpaying after 5 years be reset to something else?" Yes 0%, typicaly. Though ive not seen the offer. Once you are out of your Fixed Rate Period of 5 Years, there is not normaly any more fees with repaying your mortgage. (well ok there may be £35 for administration etc..) "Thanks for any feedback!" You need to sit down with your Mortgage Adviser. These are somewhat basic questions that they should have explained to you with the offer. They will be better placed to go through the intracieies thatn I am on a forum without the mortagge offer in hand.
  14. You can get a "Fee Free" broker but the reviews i've seen is they are mostly residential focused. They also have to have 2+ cases on the go for every 1 case a fee charging broker has to make the same kind of living. So you may not be a priority as you wish to be. Though Portfolio Landlords typicaly find fee's disapear with there broker. As the broker has a lot of the "required" information already on file anyway, if the client is making regular purchases and remortgages, that the broker is happy to cut back a little. The team in my signature would be happy to help, they assist a lot of portfolio landlords being there niche business.
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