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Found 289 results

  1. Good day! With us all living in this day of heightened retrenchment risk. Does anyone know if BTL mortgage lenders will lend if your sole means of income is from rental property? Would love to hear of any real life examples. Surely some of those successful enough to have become full time investors still have a need for mortgages? Perhaps the only way is through other investors? I am looking/hoping to make the leap. Many thanks! Wes
  2. Sorry if this has been answered already, I couldn't find anything when I searched but perhaps I'm not searching correctly. Essentially, I'd like to know if the lender stress test of 145% is based on the gross rental income or net, i.e. before management fees and maintenance fees etc are deducted or after?
  3. Hi All, I'm looking for some advice if anyone can help me I currently own a BTL in Nottingham with 61% LTV. The deal I currently have is a 2.58% repayment mortgage until the 31-12-2023. To exit the current agreement I believe it’s between a £3000-£4000 exit fee given that I originally got the deal on a 5-year fixed. My goal however is to change to an interest only mortgage and I’m looking for some advice on whether this is first and foremost sensible and whether it makes sense financially to do so given what’s available in the market? Because of the corona virus, is there anyway I could have some bargaining power with my current lender and reduce the exit fee if I remortgage with them?If anyone knows any lenders or advisors or has personal experience that could help with this, I'd really appreciate your help. Stay safe everyone. Fabs
  4. Hi All, BLUF: Views on financing mixed use property welcome! We are in the middle of buying property number 3 in our limited company (company turns 1 year old in 2 weeks). So far so good, with 2 single lets running smoothly. The third is mixed use, with a 2 bed property with a shop on most of the ground floor. Purchase price is 95k and the yield is excellent. Tenant in situ upstairs, and tenant secured for retail unit on 6 month rolling agreement. Initial attempts at getting finance on the property have been very tricky, with lenders either not interested in such a small sum, or concerned about the lack of trading time for the business; all of which I understand. In the interim, we have decided to cash buy as we don't want to loose out on what we think is a good deal, but are keen to secure finance fairly soon so we can look for number 4 in the next 3-12 months. Anyone had similar issues with mixed use property? Any tips welcome, along with places to go for finance at a reasonable rate. yours Jim
  5. Hello, I'm currently selling house and the completion was set to this week. The Buyers solicitor requested the money from lender, but the lender declined mortgage application because buyer has just been furloughed. Is there any lender who still gives mortgage to furloughed people? Should I wait until buyer is put back onto full time? Thanks,
  6. Good Morning, I am a UK citizen but currently living in the United Arab Emirates. I would like to buy a property in the UK to rent out. I currently am renting my UK home and have paid off my mortgage. I am unsure whether it would be better for me to remortgage my current house to use funds to buy another property or to take a separate buy to let mortgage. I am looking for a mortgage advisor who specialises in expat mortgages. Can anyone offer me any recommendations? many thanks Sarah
  7. 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.
  8. Hi, I am about to purchase my first property (First time buyer) in the location that is perfect for my needs, and due to many developments on going in the area including a new underground station, I expect the value of the property to increase over time. I have just received mortgage offer (2 year fixed rate) and the deal is nearly ready to be sealed, but with all this economic uncertainty, I am unsure if this is the right time to go ahead with the purchase. There are several factors for my hesitation: 1. Due to the market crash, my investments are in it's negatives for the first time. I would need to take money out of this investment in order to pay for the deposit. If I take out money now, I will be losing about 2000 GBP. 2. I was hoping to refurbish the property before I move in. Currently there are no workers who is willing to carry out the work. 3. The Bank of England has cut base interest rate to 0.1%. My mortgage offer has come through just before this change in interest rate. I wonder if there would be better rates available with this new interest rate? On the other hand, my job is secure and I don't expect corona virus to impact me financially too much. Can someone give any informed advice/thoughts on how the property/mortgage market would be like in the next few months? Many thanks,
  9. Hi all, Boris said earlier today he expects the Covid-19 Pandemic to last around 12 weeks. I understand it’s early days yet but what (if any) effect do you think it will have on the property sell market? I’m in the process of purchasing a property to move into, renovate over a period of 12-18 months and then sell on. Also I’m purchasing through a 2Year fixed rate mortgage. The application was submitted the day before the BBR fell to 0.25%. Is it worth re-applying/seeing what (cheaper?) products are now available or will lenders be more restrictive of who they lend to? Thanks in advance for any advice! Rich
  10. Hi All, This is my first time posting on Property Hub and I am looking for some specific advice regarding mortgage brokers and buy-to-let mortgages and would appreciate any support out there. I am not a new property investor/developer and have been buying small commercial lock ups, shops and garages for use in a old business that I have now sold. All of these properties were bought with cash since 2006. I know feel it's the right time to move back into residential property investment, so have started to sell off some of these commercial assets as I have wound up the old business. I currently have £150,000 in cash to invest and a further £250,000 in commercial property that will be sold over the next two years to further fund my new residential purchases. I have a good credit history and no debt apart from my own home mortgage that is only 25% of the current value. The problem I feel I may come across is that whilst I am relatively cash and asset rich at the moment I have no provable income. I have spoken with two brokers last week over the phone and received to very different answers to my queries. On hearing the above the first broker (who doesn't charge a fee) told me that the only way I would be able to get a mortgage is to start a new SPV. Once done I would be able to access mortgages for my first residential investments. He explained that because I was asset/cash rich, but had no provable income this was the only option open to me because SPV mortgages did not require any proof of income. The second broker I spoke to (who will charge me a £1200.00 fee) gave completely different advice. Her view on hearing my story was to tell me that there was absolutely no need to start a new SPV. Her opinion was that opening an SPV would only complicate the matter, with extra paperwork and legalities that could be avoided by using a traditional Buy-to-let mortgage. Her view was that she could find me a mortgage without any issues, providing the information I have told her is correct. Please could someone advise me on who is giving the best advice and value? and is a £1200.00 broker fee for a standard buy to let mortgage a good price or not? I live in South Wales, have just requested a Property Hub Goals setting call and have found a property I would like to offer on. I have also opened the SPV in case I need to use it. Thank you in advance Alex
  11. Hi Hubbers First post- happy to be an official Hubber :-) Can anyone recommend any good independant BTL mortgage advisors in Scotland? Thanks Duncan
  12. Hello all! My wife and I are hoping for a bit of advice around starting our property investment journey, and we want to run a current plan past you all for opinions and advice.... We currently own a house in Hertfordshire, in a London commuter town. We want to use capital in this property to raise cash for a buy to let property. However, we’re currently locked into a fixed term repayment mortgage until December 2022, and as of 03/03/2020, the redemption fee is £9,196. The house has been valued at £450,000 and the outstanding mortgage amount is £306,586 (£315,782 to exit the agreement with redemption fees included). Our initial thinking was just to wait until the fixed term ends in 2 years 7 months, and remortgage without any fees. However, we’re now thinking about taking the £9k hit on the redemption fee, in order to start our property investment journey sooner. Rental income and capital growth should hopefully make this worth it over the 2+ year period we would otherwise be sitting around waiting on. Current thinking: · Re-mortgage our current home to an interest only mortgage with consent to let in place. Ideally at 80% LTV, so £90k down as equity. · 2nd BTL mortgage based on £140,000 purchase price using 75% LTV product (circa £44,000 left over from re-mortgage of home…..£35,000 down as deposit, around £9k left for stamp duty, other fees, etc). The reason for moving onto an interest only for our current house, with consent to let in place, is because within the next year or so, we want to leave our jobs to a relatively low paying job, but it provides accommodation with all bills included - so we would want to rent ours out. Thanks for your time reading.
  13. Hi, it is carlo here from south london. I am new to property hub and still getting my head around on how much is out there. I am also new to property investment/trading. Now, i have a house and quite a bit of equity built with it. I need a independent mortgage broker to provide some scenario on my situation so that i can plan my property investment. The aim is to have the broker on board for ongoing investment when all kicks off Thank you Carlo
  14. Hi there! Just wanted to know whether we are missing something obvious!? Or if someone else is asking this same question? With BTL mortgage borrowing rates at 3.4% in a Limited Company, how is leveraging favourable inside a Ltd company? Compared to 1.4% rates on a personal BTL mortgage? Mortgage rates are significantly different (higher) for Ltd Companies so affects the ability to build a portfolio with basic leveraging? Any insight / thoughts / strategies / lender recommendations would be fabulous! Thank you
  15. Hello, Hope this finds you all well. I attended a talk yesterday on Mortgages. One topic which was touched on was Credit Ratings. The gentleman who was leading the presentation was a mortgage broker himself and informed us that credit ratings are important to gaining a mortgage. He explained that having a no credit rating whatsoever is just as bad as a bad one as the mortgage companies need to see that you can pay back any payments. It was suggested that getting a credit card to gain a good rate would be something to think about. I am 22 and I believe that I do not have a credit rate other than my phone bill. My question is, will it be beneficial for me to get a credit card in order to boost my credit rate. Someone also brought up about certain credit cards which are specifically good for this. Many thanks in advance. Kind regards, Alex
  16. If a parent wanted to sell a property to their child for half of the value of the property, helping them to get onto the property ladder, would the equity in the house be enough to count as a deposit for the mortgage? For example, if the property is valued at £300k but the parent sells to the child for £150k, this leaves £150k positive equity in the house. Does this mean that the child would not need to put a cash deposit down? Thanks in advance for all advice!
  17. Hi everyone, I’m yet to make my first investment. I’ve studied and am at the “jump in or you never will” stage. All this is to say; this is my first post here so apologies in advance if I ask silly questions. Starting with the following: I was discussing my 2020 plans with my accountant recently and he sneered at me when I said I intended to take out capital repayment mortgages on buy-to-let properties. In his words “99% of property investors pay the interest only”. I don’t intend to draw money from my property business for 7-10 years at least. So I thought it would be more beneficial to ‘own’ as much of the properties as possible after point. I’d love to hear from investors who are interest only, and those who are capital repayment, to understand if I need to rethink my plans before I dive in. Thanks in advance - Rich.
  18. Hi all, My stepbrother and I currently jointly own one buy to let property which is slowly (!) building up funds for the next deposit. We are looking at finance for our next property and there's a possibility of an investment from a family member. (They would get a percentage back on their investment each year and at the end of the 5 year fix we would buy them out, returning their original investment). We have looked at setting up the investment as a charge on the property so as to protect the investors money but lenders aren't prepared to lend on this basis. The alternative is 'gifting' the investment but that doesn't protect the investor's money. Are there any other options?? Many thanks, Alex.
  19. Hi all, I have recently found a property that I would like to purchase to live in but to a cash buyer and be more appealing to the seller my uncle said he could loan me the money but would need the money back into his business which I was planning to get a mortgage after 6 months - a year of having the property so I would only be paying 3% interest max on the loan. Would I be able to then get a mortgage to pay off the loan he is giving me, if so how would this work? Should I be speaking to an advisor? Thanks in advance, James.
  20. 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
  21. Hi Everyone, I'm new to the forum so first of all I would like to introduce myself. My name is Fabian and I have 1 but-to-let which was initially an apartment I bought for myself. Having read a lot of the content on the website, podcast and also now Rob D's book recently, I now realise how wrong I went about everything but I guess it's part of the property journey too. Anyhow, I wanted to ask a question regarding my natwest mortgage. A few months ago I received a letter from Natwest stating that they are introducing a new fee of £120 for customers who let out their property. They claim it's to offset their cost but I find it bizarre that they can just send a letter and start demanding £120 each year. Does anyone know if it's possible to contest this at all? Any help is appreciated IMG_0563.HEIC
  22. So I'm purchasing a leasehold flat in Liverpool and the ground rent is £300. I was unexpectedly notified by my solicitor that because the amount is over £250 (£1,000 in London), then the lease falls within the Housing Act 1988 and will be legally classified as an AST. The term however is 250yrs. My solicitor advised that because of this AST classification, the lease is not CML (Council of Mortgage Lenders) compliant- and 'many high street lenders are not willing to grant mortgages on such leases'. This has gotten me particularly nervous as I'm due to exchange next week..... Has anyone else come across this issue? Does it pose a genuine threat to securing a mortgage? Thanks
  23. WOW do I need this website and forum! Talk about venturing into the unknown.... scared and excited....... So, we have an idea to purchase a property for use as a furnished holiday let. I have started to read up on all it entails and have bought Iain Wallis Avoid Property Taxes and his Essential Tips book and have started to go through the helpful videos on this site. However I still have some questions which if anyone can point me in the right direction would be greatly appreciated in terms of how we secure the funds. Option 1: Remortage home (owned outright) and use the funds to purchase a holiday let. However, I am told that I can’t then offset the interest against the holiday let - is this correct. What are any other pitfalls of this approach?? Option 2: Secure a holiday let mortgage and raise the funds to put down a deposit (savings topped up with a possible bank loan). I understand that the interest on the mortgage could then be offset against the holiday let income. The benefits I believe it that our residential property remains safe, mortgage interest can be offset. Downfalls are that the interest rate will be higher and we have to meet criteria on holiday let to be accepted for a holiday let mortgage. So if anyone can advise on this that would be great as I seem to be getting myself stuck in a rut trying to find this out. Then, I belive, and again, please advice, we can purchase the property in joint names (myself and husband) but apportion the income as we require as one is on a higher tax code and the other a basic tax code. Also, if any one has any recommendations for a property accountant that too would be great. There’s a wealth of knowledge out there and I’d really love to learn from those who have been and done it with the hope that I can offer some guidance back to others once I’ve gone through it myself! Thanks
  24. My sister and I are in the process of purchasing our 1st property through our Ltd co, a 2 bed flat in Liverpool city centre close to the Liverpool Waters area. The deposit was paid on this, off plan, last year and it is due to complete in 6 weeks. We used a mortgage broker who was highly recommended on this site who submitted a mortgage application which was declined. We have been advised that any further applications are also likey to be declined and he has recommended that we withdraw from the purchase of this property. The main reasons cited were that it is an investor area wich would limit the re-saleability of the property and that there are a high number of developments in the area with many more planned. The developer is also offering a 7% net rent return scheme which the broker advised is further reducing the lenders available to us. Having done our research on what we thought was a good investment, we were shocked to hear this. Has this happened to any of you before? What are our options now? Is this scaremongering from an overly cautious (but experienced) mortgage broker or do we heed his advise? Many thanks if you have read to the end. We would really appreciate your views and advice.
  25. I have bought my own home (3 bed semi) on with a 5 year fixed rate mortgage back in the beginning of 2018, now around 18 months into the 5 years. My plan for my first BLT property is to remortgage this house into a BLT mortgage, and extract the capital as part of the deposit on my new home. I am concerned that because I have committed to a 5 year fixed rate mortgage, I am not sure if I can remortgage or change to a BLT mortgage without paying excessive fees. Having just listened to TPP064 about mortgages, I now see the error of my ways in committing to a 5 year fixed and not weighing up the variable mortgage rates in my plan. I am looking to advice to people that have been in my position in the past or know what my options would be to achieve my goals?
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