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Found 10 results

  1. Hi, I am looking to remortgage my only BTL property with the intention of buying a second BTL property. I have begun the process with Barclays through a mortgage advisor. The problem is that they cannot give me a mortgage offer until I have found a second property that I wish to purchase. Is this normal? I want to remortgage my current property on a specific date at the end of the current term (in a few weeks) to avoid going onto the SVR. I don't understand how anyone can find a suitable property with that kind of time constraint. Is this normal when trying to raise funds by remortgaging? I had assumed they just send the money to your bank account when the mortgage goes through, and then you are free to buy the right property when you find something suitable. Is this normal? Is there any way to get around this? I'd be very grateful for any help. Thanks, Harry
  2. Hi All, New to the forum and looking for some insight into what my chances may be of securing a btl mortgage in limited time, So to cut a long story short, I have purchased a flat in auction just on Friday 28/2/21, yes I know it's crazy but I haven't physically seen it. I was outbid on the actual auction, however it didn't meet the reserve so didn't sell. A week later I get a call, it's still available and being offered to me below the reserve before it's back in auction a week later, I make a lowball offer which was refused, I then offer to meet half way to the sellers asking price and I would make a deal today (Friday). A couple hours later I get a call and the seller has accepted! It's local, I know the area and market value, and it's got enough of a margin to cover potential issues, although I'm confident it's a straightforward renovation (new bathroom, kitchen decoration, possibly new boiler), so I FOMO'd and paid the deposit to secure it without viewing, and yes I studied the legal pack and all is good. To cut to the chase it will be a buy-to-let investment, and it is still sold under auction conditions with a 6 week completion date, and my intention is to renovate to a good standard before letting. I want to try to secure a buy-to-let mortgage in time to avoid extra costs of bridge loan. The property does look to be in 'habitable condition' , but my question is is it in 'lettable' condition? The only hurdle I can see that could delay the mortgage application is if the survey may regard it as not in 'lettable' condition before renovation. I know the property was being lived in by the owner/occupiers until recently, from the pictures it obviously needs renovating/modernising, but assuming it has a working kitchen, bathroom, electrics, heating and no holes in the roof, would lenders consider it unlettable just on the basis it needs updating? I want get some idea if this is doable from anyone with experience in getting a buy-to-let mortgage for auction property, and what hurdles you had with it. Pictures are attached. Appreciate your help members. Mohsin.
  3. Hi everyone, I have been buy to let market using mortgage for a few years. Now I have some savings and am able to look at other options. I am not sure other options, e.g. cash buy, corwdfunding, are better than my current way. I would like to know your opinions and if there are other better ways than what i know. 1. My current way - apply 80% LTV mortgage buy to let, either 2 or 5 years, rent the property out to provide me monthly income. If the property price increased, i would sell it for some capital gain income or i can keep it for even longer term hoping it will increase more. 2. Cash buy - if the property is £150k market value, sometimes cash buyer could negotiate a good price as the seller urgently need cash. The property could be purchased as £120k or lower. It means after cash buy, i can refinace/remortgage it to recycle the cash. There are some addtional payment, e.g. stamp duty, socilitor fees, etc, but not much. The cash is in theory constantly recycled. 3. Crowdfunding - recently I heard this term and it can provide fixed return of 8-12% in 6-18months, depending on projects. One example, www.sourced.co, they only provide property investment project. Have anyone used them before? It sounds low risk and reasonble return. However, I know that it can't be true and any investment has risks. Anyone has used such method and would like to share your opinions? Note: There are some pros and cons using ltd company, however, this is not part of the question. The above 3 ways can apply to both personal and ltd company. I would like to know your opinions on which way produces higher return (obviously higher risk i assume) and if there are other ways. It could end up with similar return and similar risks. Thanks everyone in advance. Dawei
  4. Looking for some advice, please. Our London (residential) house: worth 800K, 300K mortgage remaining. Two BtL properties: Manchester, worth 140K, 90K mortgage, London, worth 400K, 280K mortgage. Both rented out achieving decent yields. An inheritance coming my way means I'm considering paying off our residential mortgage (I'm 55) and either paying off one of the BtL properties or buying another BtL. I guess my question is around the idea of paying off BtL portages; smart or daft, please? Thanks in advance for any thoughts/advice or insights.
  5. Dear Hubbers, I am in need of guidance on specialist mortgages and risk - very grateful if you could take 5 mins to look at my 3x questions below. Situation Reserved an offplan city centre flat (reservation paid, no deposit paid, not exchanged contracts). B2L mortgage declined by three separate high street mortgage providers. Only 1 of 3 valuers actually conducted a survey. Reasons for rejection centred on: Development being 'too investor led; not enough owner-occupiers' Ground rent being greater than 0.1% of sales price, and Undisclosed issues with cladding Notes on the development: In 2017 the developer and lead contractor went into administration. New developer and builder brought in with strong track record. Previous developer provided a rent guarantee which turned off many lenders. No rent guarantee is provided by the current developer. Ground rent 0.14% of purchase price Cladding is Alsecco brick slip system Investor to owner occupier ratio is 60:40 Mortgage brokers have advised me: High street lenders have low risk appetite and their valuers are likely to have ruled out this development back in 2017 due to the rent guarantee and also that it is an investor led project. Their evaluations are yet to have been updated. The valuers' feedback is likely relative generic e.g. cladding. Specialist mortgage lenders are likely to consider the development and will charge higher fees (extra c£1,500) and higher interest ( extra c1.4%pa). Individual investors would use a specialist lender if they believed a development was purchased at discount and has strong chance of capital growth - thus they are willing to pay higher mortgage costs in order to realise that discount and growth. Developer / my solicitor unable to provide details of mortgage providers for other investors in the development. I can't help but sense that if I purchase this property I am shooting myself in the foot: I have to pay a lot more for the specialist mortgage; run the risk of having to get another expensive remortgage; and the risk of struggling to sell the property as I'm limited to cash buyers or investors with specialist mortgages. Why would I purchase it and pay more mortgage costs when I could just purchase a resale property in the knowledge that I can get a high street mortgage at lower rate and also have lower risks of remortgage/resale? Both the resale and this offplan property are subject to the same house price growth and rental growth rates of that given area. ...And yet individual investors must be using specialist mortgages and seeing financial success - the property investment firms cannot exist solely on cash buyers. What am I missing? Where do I go from here? 1. Continue with purchase + use specialist mortgage lender + risk remortgage and resale. 2. Cancel purchase + look for another offplan 3. Cancel purchase + buy a resale Questions: 1. What will the mortgage availability be like at remortgage, say after 2 years? I assume I would be limited to the same specialist mortgages as I still have the same constraints: > 0.1% ground rent, high number of investors and cladding. And therefore accept higher interest rates. 2. Is my resale market, in say 5-8 years, much smaller if I have taken a specialist mortgage? I assume, as the same mortgage constraints will stand in 5-8 years, that my only resale market will be investors: cash buyers or investors with specialist mortgages. As a result, I will not be able to demand a higher price for the unit, which seems a pretty illogical exit strategy. 3. Why would I use a specialist mortgage, as an individual investor not under a limited company, if it will cost me more and I run the risk of not getting a remortgage or resale? The only rationale I have for doing this would be if I was confident that the unit was purchased at discount and that it was worth paying higher costs to be able to realise this discount in a future sale. However I'd still have the ground rent and cladding issues - if they are indeed the real issues or just generic issues given. A lot of detail there - thank you for bearing with. Look forward to hearing your advice.
  6. Hi, I am a newbie investor currently in the goal setting stage of property investing. After attending one of the many weekends that 'a company' tries to give you an outrageously priced upsell I am thankful I have found Property Hub and Property Geek. The information provided by you guys is fantastic. I was gifted Rob D's Property Investment book last week for my birthday which I am steadily ploughing through and I have invested in Rob D's Ultimate Property Investment Toolkit. My first step is finding a good mortgage broker. I am based in Bath so any recommendations for good brokers in the South West would be massively appreciated? I will be attending as many Bristol property meet ups as possible so I hope to see some of you there where I can soak up your knowledge and hopefully in the not too distant future be at a level I can offer a wealth knowledge to others as well. Samuel
  7. I own two buy to let properties plus my residential home. All have mortgages secured on them. I withdrew equity from one of the BTLs (Property 1) before the stricter rental cover tests came into force in 2017. I have been able to refinance since then but choice of lenders has been greatly reduced as many won't touch it due to the large size of the loan against the monthly rent. Property 1 has a value of £375k, outstanding mortgage £246k (LTV 66%), and monthly rent £1075. It is my former home and has seen good capital growth as it is in a prime residential area, but clearly it does not yield well! The second BTL property (Property 2) has a value of £320k, outstanding mortgage £170k (LTV 53%), and monthly rent £1200. The two existing BTLs are owned with my wife. We have so far not converted to a limited company as we have avoided the mortgage interest relief changes by making my wife, a basic rate taxpayer, entitled to the income. That is currently the plan for the new acquisitions too. I am looking to expand my portfolio and have a goal of buying another two BTL properties this year, with hopefully more to follow. I have enough cash saved to use for deposits and fees etc. on the two new BTLs. (I may also look at releasing equity from Property 2 to increase my investable funds.) We can assume that the two new BTLs will have significantly higher yields and wont struggle to satisfy lenders' stress tests when looked at in isolation. However, I have identified that the portfolio landlord rules may be a hurdle to my portfolio expansion plans as the low-yielding Property 1 is likely to skew the rental cover tests that lenders will run on my portfolio as a whole once I reach 4 properties. I would be grateful for any thoughts or advice on the following: 1. At what point do I become a portfolio landlord? I don't think my residential home counts towards the 4 properties, but I have heard that when you own three mortgaged BTLs and are in the process of applying for the fourth BTL mortgage, lenders will apply the portfolio landlord tests at that point. Is that right? 2. Is there a standard portfolio rental cover test which lenders are obliged to use? Or do the exact calculations vary by lender? I have seen 145% @ 5.5% interest rate mentioned a lot. Are some lenders more flexible than this? If not, I think Property 1 is going to be a large hurdle to my expansion plans. 3. Even if I could find a flexible lender who would lend on my portfolio including Property 1, will Property 1 always hold me back when I seek to expand my portfolio and refinance? After all, each time I make a new acquisition I will be potentially approaching a new lender each time - each one will have their own view on my portfolio based on their own criteria. I don't want availability of finance to be a constant struggle as I expand. Therefore, should I consider selling Property 1 and putting the equity of £129k-ish to work elsewhere? I'd rather not sell as I believe future capital growth prospects remain strong, but I am also keen to expand in the short term. 4. Would converting the existing BTLs and/or buying the new BTLs within a limited company help with availability of finance? I understand the portfolio stress tests may be more relaxed when it's a limited company borrower. Looking forward to your thoughts. Thanks Matt
  8. Hi, I'm looking to release some equity in my home and use this cash as a deposit on my first buy to let mortgage but everything I've seen suggests you need to be over 55. Is this true? if not where do I start? Many Thanks
  9. Hi all, I'm close to buying a property in Belfast, under a residential mortgage and having a family member living in the property. My plan is to come back and live in the property in the next 2/3 years, but anything could happen. The same with my family member, their circumstances could change, and they may not want to live there anymore.. so my question is has anyone done this before? And if I stayed overseas for longer than expected & my family member wanted to move.. what would be the case, could I rent to a 3rd party? It's 25% upfront with a 2.6% fixed 5 year rate on the mortgage, so hence why I'm keen to do this - as I have the access cash for the deposit and my family member would pay me the rent/mortgage while I'm away. Curve-ball.... , My partner who I've been seeing is also looking to do the same, with another property in UK. What if both of us moved back to the UK under both these mortgages and we were married what would be the case and outcome be? Things are moving that way so its a valid question I suppose.. Just trying to figure things out and what would be the best way to go about things for situation. Any help / advice would be great..! Thanks James
  10. I have owned and lived in my flat for 4 years with a residential mortgage. I am moving out of my flat soon and plan to rent it out. I also want to remortgage to release funds for a new BTL as i have significant equity in the flat. I have been self-employed for the last 6 months or so which means I will not be able to remortgage with a Res. mortgage. But I have also been told that I won't get a BTL mortgage unless the property is already let. Does anyone have any experience of this? Ideas of what I can do to release equity in my current circumstance? Thanks.
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