Remortgaging to raise funds

[harryl]

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

 

 

[kirsty_c]

Lenders have Anti money laundering regulations to comply with and like to 'follow the money' to be comfortable when lending. Without a target property identified the lender can't be certain you would use the funds for that purpose. Quite a lot of lenders have this policy. 

There are some specialist BTL lenders who aren't as fussy about it, but you should expect the rates to be higher. 

Most applicants would make the application once a target property has been identified - the urgency to make this happen to coincide with your fixed rate expiry is unfortunate timing but you may have to swallow some payments on the current loan at SVR until such time you find a suitable property to purchase, at which time you can proceed with the exercise. 

 

 

[hornepropertiesltd_hotmail_com]

we are going through the same process now, we are in the final stages of remortgaging and was told last week we need to find a property to complete along with property details, new mortgage details, and rent prices from an estate agent. before funds will land. we viewed 4 properties Thursday and offered on them all some at list price some just under with tenants in situ but haven't heard anything back yet, due to the demand in my area I have seen prices go £15k more then listed so its going to be a challenge that's for sure 

[EvolutionBlogger]

On 8/11/2021 at 6:56 PM, harryl said:

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

 

 

I just did a  remortgage with Barclays, and released some equity to purchase another buy to let property. It sounds like you got unlucky and the underwriter has chosen to pick on you

The way round this is to go with a different lender 

[kirsty_c]

On 8/14/2021 at 3:14 PM, EvolutionBlogger said:

I just did a  remortgage with Barclays, and released some equity to purchase another buy to let property. It sounds like you got unlucky and the underwriter has chosen to pick on you

The way round this is to go with a different lender 

Or maybe this is Barclays policy, but you got lucky that someone didn't ask  Was your LTV low by any chance? if so maybe the requirements are more relaxed. 

I'm aware its policy with many lenders and having worked in underwriting teams it doesn't sound like the kind of condition an underwriter would put in just to get comfortable approving. 

 

 

[Siruskey]

Never had this issues myself. Just done one last month. 

Could it be because it's a high street lender? 

 

Speak with @simon allen at searchlight finance. 

[EvolutionBlogger]

On 8/15/2021 at 5:35 PM, kirsty_c said:

Or maybe this is Barclays policy, but you got lucky that someone didn't ask  Was your LTV low by any chance? if so maybe the requirements are more relaxed. 

I'm aware its policy with many lenders and having worked in underwriting teams it doesn't sound like the kind of condition an underwriter would put in just to get comfortable approving. 

 

 

It was low LTV (under 50%). I think that made the difference

[cleo]

It sounds like you are refinancing for a specific purpose (to buy another property), so they might need to ensure you spend the money on that property (as well as any money laundering requirements as mentioned above).  I imagine the terms/amount lent etc would be different if  you were refinancing for any other purpose?? I would expect this to be the same with most lenders.