Help regarding mortgage - Letting

[JCKST1]

Hi,


Looking for some advice here.
I have seen a property local to me for sale at a great price due to it being repossessed. I have spoken with a mortgage broker and I can not get a buy to let mortgage (self employed + large deposit!) so I have been looking at a normal mortgage and was thinking about buying it then a month or so down the line renting it out and calling the bank to tell them I am doing this, I actually have a tenant in mind who is willing to take it.

Is this possible, I have read numerous stories online but not sure if after 1 month they would believe me? Presume the payments would increase but I dont mind as its a good yield.

Thanks

[Moominho]

Sounds a bit disingenuous to me, but Sarnie is your man. I would PM him if he doesn't appear on this thread...

[Sarnie]

JCKST1 said:

Hi,


Looking for some advice here.
I have seen a property local to me for sale at a great price due to it being repossessed. I have spoken with a mortgage broker and I can not get a buy to let mortgage (self employed + large deposit!) so I have been looking at a normal mortgage and was thinking about buying it then a month or so down the line renting it out and calling the bank to tell them I am doing this, I actually have a tenant in mind who is willing to take it.

Is this possible, I have read numerous stories online but not sure if after 1 month they would believe me? Presume the payments would increase but I dont mind as its a good yield.

Thanks

Lenders are wary of "back door BTL's" like this......if you buy it on a residential mortgage, you would then need to apply for Consent-To-Let from the current lender. Approving this is entirely at their discretion and in most cases they would want extenuating circumstances eg, a sudden change in job location etc.

Given your intention for the property, why not just pursue an appropriate BTL mortgage?

As BTL & Residential lending is underwritten in almost the same manner these days, why would you get a Residential mortgage but not a BTL?

[Sarnie]

Moominho said:

Sounds a bit disingenuous to me, but Sarnie is your man. I would PM him if he doesn't appear on this thread...

Ta!!

[JCKST1]

Thanks Sarnie.

BTL I am looking at double the deposit unfortunately, at a push it maybe possible if no other option but it would have to be last resort due to the cost.

Another problem I am having is that with the house being a re-possession it needs to be completed within 21 days of the offer being accepted, after speaking to my mortgage advisor it looks unlikely this will happen

[Sarnie]

JCKST1 said:

Thanks Sarnie.

BTL I am looking at double the deposit unfortunately, at a push it maybe possible if no other option but it would have to be last resort due to the cost.

Another problem I am having is that with the house being a re-possession it needs to be completed within 21 days of the offer being accepted, after speaking to my mortgage advisor it looks unlikely this will happen

If he can't do, speak to someone who can

PS: For a repossession you usually just need to exchange contracts within the specified timescale, not complete. If you need to move quick then you'd ideally need to have your AIP done and have all the required documentation ready to go the day your offer was accepted, which if you are self employed is likely to mean requesting SA302's from HMRC.........

[JCKST1]

Sarnie you seem to be a man in the know. Any chance you could fire me an email and we can chat that way.
I presume you are a broker or similar?

[Sarnie]

JCKST1 said:

Sarnie you seem to be a man in the know. Any chance you could fire me an email and we can chat that way.
I presume you are a broker or similar?

Yep, I run a Mortgage Company, you have email