BTL mortgage with no other residential property
Discussion
Having trouble finding a BTL mortgage with no other residential property in my name.
Currently have a mortgaged flat in my father's name which was purchased 6 years ago using a deposit I inherited. He will be transferring equity to me upon re-mortgage. The flat is currently rented to tenants with over 10 months on their current tenancy which we can show. It has also been rented in this manner since purchase.
I rent a flat elsewhere with 10 months left on that tenancy as well and can show evidence of this. I also live and work on the south coast, when the initial property is in Hertfordshire.
Are there any lenders who will lend a BTL product with no other residential property? I'm also unable to show I had the deposit before purchase as my bank (Nationwide) don't archive statements for more than 6 years, so it's gone past the point of being able to get one. It's a frustrating situation as if a "person" were reviewing it, it should seem quite clear cut... but I feel there are loads of criteria/hoops to jump through to get this sorted.
Cheers.
Currently have a mortgaged flat in my father's name which was purchased 6 years ago using a deposit I inherited. He will be transferring equity to me upon re-mortgage. The flat is currently rented to tenants with over 10 months on their current tenancy which we can show. It has also been rented in this manner since purchase.
I rent a flat elsewhere with 10 months left on that tenancy as well and can show evidence of this. I also live and work on the south coast, when the initial property is in Hertfordshire.
Are there any lenders who will lend a BTL product with no other residential property? I'm also unable to show I had the deposit before purchase as my bank (Nationwide) don't archive statements for more than 6 years, so it's gone past the point of being able to get one. It's a frustrating situation as if a "person" were reviewing it, it should seem quite clear cut... but I feel there are loads of criteria/hoops to jump through to get this sorted.
Cheers.
campionissimo said:
A relative had exactly the same issue a couple of years ago, and used an IFA in Harpenden who found them a BTL product even though they had no other domestic mortgage (they had had one a few years previously)
They ended up with Virgin.
Cheers - I've got an IFA who's been trying to get me a mortgage with Metro Bank, but it seems after every document they've got another question. Good to know it can be done if this one doesn't happen.They ended up with Virgin.
My only issue might be that I've never had a BTL (or any) mortgage in my sole name?
romeogolf said:
campionissimo said:
A relative had exactly the same issue a couple of years ago, and used an IFA in Harpenden who found them a BTL product even though they had no other domestic mortgage (they had had one a few years previously)
They ended up with Virgin.
Cheers - I've got an IFA who's been trying to get me a mortgage with Metro Bank, but it seems after every document they've got another question. Good to know it can be done if this one doesn't happen.They ended up with Virgin.
My only issue might be that I've never had a BTL (or any) mortgage in my sole name?
This is directly from their criteria;
https://www.metrobankonline.co.uk/Global/Metro%20B...
"Buy to Let
Rental calculation: Rent must cover interest only payments to the loan amount by 125%, calculated at 5.5%.
Minimum Age: 21.
First Time Buyers: Not acceptable – must be an owner-occupier. First Time Landlords accepted."
"must be an owner-occupier" = You are not an owner occupier = they will not lend to you.
Sarnie said:
Why is your IFA trying to place this mortgage with Metro Bank???
This is directly from their criteria;
https://www.metrobankonline.co.uk/Global/Metro%20B...
"Buy to Let
Rental calculation: Rent must cover interest only payments to the loan amount by 125%, calculated at 5.5%.
Minimum Age: 21.
First Time Buyers: Not acceptable – must be an owner-occupier. First Time Landlords accepted."
"must be an owner-occupier" = You are not an owner occupier = they will not lend to you.
He said he spoke to someone there who was able to over-turn this criteria with certain other proofs in place such as a current tenancy agreement etc. One of these was proof I had the deposit before purchase, but I can't provide this as the inheritance was to my mother (who then gave it to me when I was a child, 4/5 years old). The money was in my name in my own account until purchase in 2009, but my bank statements only go back to 2010 so I can't show it. This is directly from their criteria;
https://www.metrobankonline.co.uk/Global/Metro%20B...
"Buy to Let
Rental calculation: Rent must cover interest only payments to the loan amount by 125%, calculated at 5.5%.
Minimum Age: 21.
First Time Buyers: Not acceptable – must be an owner-occupier. First Time Landlords accepted."
"must be an owner-occupier" = You are not an owner occupier = they will not lend to you.
Edit to add: The current mortgage is in joint names with me and my dad - I think he was under the impression as it was a remortgage and the current one is in my name that this might be acceptable? Not sure.
romeogolf said:
Follow-up question: First time I've done this so all a bit daunting.
I was under the impression a mortgage broker is paid on receipt of the mortgage offer. Am I correct? Or do you pay when the application is submitted?
Ta.
Depends on how they set up their business model. It will state in section 8 of the illustration given to you by Broker at the very outset and will state the Broker fee, the amount and when payable......I was under the impression a mortgage broker is paid on receipt of the mortgage offer. Am I correct? Or do you pay when the application is submitted?
Ta.
Sarnie said:
Depends on how they set up their business model. It will state in section 8 of the illustration given to you by Broker at the very outset and will state the Broker fee, the amount and when payable......
This is what I've got:Section 8 said:
8. What fees must you pay?
Fees payable to Metro Bank PLC
Telegraphic Transfer Fee £35.00
Payable at the start of the mortgage (deducted from advance)
Not refundable
Discharge Fee £150.00
Payable on final repayment
Not refundable
This is the current fee
Other fees
Legal fees payable to your conveyancer for acting on behalf of the lender, usually payable at the
time the mortgage starts and non-refundable. The figure quoted is an estimate and is only part of
the cost of the conveyancing work. You should ask your conveyancer for details. This fee is not
chargeable if the lender's conveyancer is used, terms and conditions may apply.
Lender will appoint solicitor from their panel to act on their behalf. If you decide not to use their
solicitor or undertake independent legal advice, this will not be covered under the free legals
scheme. Some items are not paid for included mining and unusual search fees, change of name
on title, transfer of equity and first registration title. Free legal costs are available for properties
valued up to £1.5 million.
£120.00
You may have to pay other taxes or costs in addition to any fees shown here.
I have a separate message stating he'd do all 3 mortgages that I'm looking to get through for £350 - But he didn't specify if it was on application or approval so I'm not sure. Yay for the first time doing anything...Fees payable to Metro Bank PLC
Telegraphic Transfer Fee £35.00
Payable at the start of the mortgage (deducted from advance)
Not refundable
Discharge Fee £150.00
Payable on final repayment
Not refundable
This is the current fee
Other fees
Legal fees payable to your conveyancer for acting on behalf of the lender, usually payable at the
time the mortgage starts and non-refundable. The figure quoted is an estimate and is only part of
the cost of the conveyancing work. You should ask your conveyancer for details. This fee is not
chargeable if the lender's conveyancer is used, terms and conditions may apply.
Lender will appoint solicitor from their panel to act on their behalf. If you decide not to use their
solicitor or undertake independent legal advice, this will not be covered under the free legals
scheme. Some items are not paid for included mining and unusual search fees, change of name
on title, transfer of equity and first registration title. Free legal costs are available for properties
valued up to £1.5 million.
£120.00
You may have to pay other taxes or costs in addition to any fees shown here.
His fee would have to be detailed on at least one of your illustrations, have you checked the other two?
It has to be disclosed on at least one of the illustrations and state when it's payable, which is also disclosed to the lender and then detailed on that mortgage offer.
A wishy washy email would put him on shaky grounds in defence of a complaint about a broker fee, which is by far the number one reason for mortgage complaints to FOS.
It has to be disclosed on at least one of the illustrations and state when it's payable, which is also disclosed to the lender and then detailed on that mortgage offer.
A wishy washy email would put him on shaky grounds in defence of a complaint about a broker fee, which is by far the number one reason for mortgage complaints to FOS.
Sarnie said:
His fee would have to be detailed on at least one of your illustrations, have you checked the other two?
It has to be disclosed on at least one of the illustrations and state when it's payable, which is also disclosed to the lender and then detailed on that mortgage offer.
A wishy washy email would put him on shaky grounds in defence of a complaint about a broker fee, which is by far the number one reason for mortgage complaints to FOS.
The first mortgage is to re-mortgage a property in order to purchase two more. He's agreed £350 for all three, but didn't state when it would be paid. I'm likely to offer him £150 on offer of the first, £150 on offer of the second and the final £50 on the third as that seems fairest in my mind. I've only received one illustration (the first mortgage) as I've not yet found other specific property. It has to be disclosed on at least one of the illustrations and state when it's payable, which is also disclosed to the lender and then detailed on that mortgage offer.
A wishy washy email would put him on shaky grounds in defence of a complaint about a broker fee, which is by far the number one reason for mortgage complaints to FOS.
Sorry, I probably seem incredibly naive - This was done by my dad the first time around, but we're no longer on good speaking terms, hence the shift to me.
romeogolf said:
The first mortgage is to re-mortgage a property in order to purchase two more. He's agreed £350 for all three, but didn't state when it would be paid. I'm likely to offer him £150 on offer of the first, £150 on offer of the second and the final £50 on the third as that seems fairest in my mind. I've only received one illustration (the first mortgage) as I've not yet found other specific property.
Sorry, I probably seem incredibly naive - This was done by my dad the first time around, but we're no longer on good speaking terms, hence the shift to me.
Strictly speaking, whatever he is charging you for the current mortgage, should be detailed specifically on that illustration. It's to create an audit trail.....you could agree any figure verbally but what if he altered what he wanted to charge you when the offer was issued? If you then made a complaint he would not have anything in writing to you or anyone else to.Sorry, I probably seem incredibly naive - This was done by my dad the first time around, but we're no longer on good speaking terms, hence the shift to me.
Not really your concern I suppose, just surprises me that there are still people in the industry to do things like this.....his compliance people would have a field day with this.
Anyway, good luck!
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