Mortages - the system etc this might be cheeky
Discussion
Ok firstly I have a really good mortgage man, so I could ask him, but I fear I'm wasting his time possibly so I'm keen to see what the opinions are as this may be a quick kill.
Situation is thus.........
want to buy a third house, but not sell the first two.
Don't necessarily have the amount of credit available to buy the third house. It would need to be mortgaged to 80% plus.
House 1 = rented out
House 2 = living in
If I was to rent House 2 out for 6 months, would that enable me to get the third mortgage in place, and then if I was to stop renting out House 2 would that be against the rules, and or even breaking the law?
House 1 irrelevant, but House 2 and House 3 would be lived in as residential (opposite sides of country).
The issue as far as I understand it is - a 3.5 multiplier on my salary wouldn't cover all three mortages.
apologies if I have that totally wrong - It's just my musings...........
Situation is thus.........
want to buy a third house, but not sell the first two.
Don't necessarily have the amount of credit available to buy the third house. It would need to be mortgaged to 80% plus.
House 1 = rented out
House 2 = living in
If I was to rent House 2 out for 6 months, would that enable me to get the third mortgage in place, and then if I was to stop renting out House 2 would that be against the rules, and or even breaking the law?
House 1 irrelevant, but House 2 and House 3 would be lived in as residential (opposite sides of country).
The issue as far as I understand it is - a 3.5 multiplier on my salary wouldn't cover all three mortages.
apologies if I have that totally wrong - It's just my musings...........
Just ask Sarnie to do it for you, or ask your mortgage man to do it have a go.
As far as I am aware there is no one here who owns a bank.
I do not wish to sound harsh, but you have said you have a mortgage adviser. If, for whatever reason, you don't trust him then get Sarnie to do it for you.
You will usually always pay more doing it yourself as you lack the buying power of a good mortgage broker.
Good luck!
As far as I am aware there is no one here who owns a bank.
I do not wish to sound harsh, but you have said you have a mortgage adviser. If, for whatever reason, you don't trust him then get Sarnie to do it for you.
You will usually always pay more doing it yourself as you lack the buying power of a good mortgage broker.
Good luck!
The Selfish Gene said:
ha I knew I would get that which is why I said I had one but didn't want to bother him 
is that a 'don't be a dick head you have no chance' ?
or ' yeah that's do'able, give him a ring'?
Neither really, just that you said you had a good mortgage guy....this is what a broker is for, to ping ideas/thoughts off so you can get an informed response ........no broker should mind exploratory conversations like this.......all applications have to start somewhere is that a 'don't be a dick head you have no chance' ?
or ' yeah that's do'able, give him a ring'?
I’ve not heard that a buy to let mortgage will ever come with an insistence that the property is let. How could it, you don’t know whether you’ll find a tenant.
I’m about to be in the same situation as you, one home rented, living in another, and buying a third, and Natwest have been good on affordability.
I’m about to be in the same situation as you, one home rented, living in another, and buying a third, and Natwest have been good on affordability.
James_B said:
I’ve not heard that a buy to let mortgage will ever come with an insistence that the property is let. How could it, you don’t know whether you’ll find a tenant.
I’m about to be in the same situation as you, one home rented, living in another, and buying a third, and Natwest have been good on affordability.
Surely mortgage fraud if you apply for a BTL mortgage knowing your intention is to occupy the property yourself in 6 months ? I’m about to be in the same situation as you, one home rented, living in another, and buying a third, and Natwest have been good on affordability.
James_B said:
I’ve not heard that a buy to let mortgage will ever come with an insistence that the property is let. How could it, you don’t know whether you’ll find a tenant.
I’m about to be in the same situation as you, one home rented, living in another, and buying a third, and Natwest have been good on affordability.
It depends on the lender........this would be a Let-To-Buy and not a Buy-To-Let so the requirements are different.....I’m about to be in the same situation as you, one home rented, living in another, and buying a third, and Natwest have been good on affordability.
The Selfish Gene said:
that's not harsh Julian
it was more the question if I rent out for 6 months to get the 3rd one through, is it dodgy to then un-rent and live in it.......
I shall call my chap!
I wish I could pretend I knew what a 'let to buy' mortgage was (rather than a' buy to let' one), but this is the first time I have heard of one! it was more the question if I rent out for 6 months to get the 3rd one through, is it dodgy to then un-rent and live in it.......
I shall call my chap!
Every day is a school day!
66Elan said:
James_B said:
I’ve not heard that a buy to let mortgage will ever come with an insistence that the property is let. How could it, you don’t know whether you’ll find a tenant.
I’m about to be in the same situation as you, one home rented, living in another, and buying a third, and Natwest have been good on affordability.
Surely mortgage fraud if you apply for a BTL mortgage knowing your intention is to occupy the property yourself in 6 months ? I’m about to be in the same situation as you, one home rented, living in another, and buying a third, and Natwest have been good on affordability.
Why when we've got the biggest house price bubble ever, thanks to near zero interest rates, would you want to have more exposure to the UK residential property market?
The asset price bubble might not burst this year or even next, but it will at some point and when it does it will be brutal, ask anyone who was around in early 1990s.
With average prices at 8 times average earnings, expect prices in real terms to at least half as we return to normal ratios.
https://www.local.gov.uk/about/news/average-house-...
The asset price bubble might not burst this year or even next, but it will at some point and when it does it will be brutal, ask anyone who was around in early 1990s.
With average prices at 8 times average earnings, expect prices in real terms to at least half as we return to normal ratios.
https://www.local.gov.uk/about/news/average-house-...
I doubt house values will ever half, but yeah a correction will inevitably happen again, maybe sooner than most care to imagine so I wouldn't want to be exposed to numerous properties if you are having to use sneaky practices to be seen to afford them now.
My fear is interest rates returning to normal levels of 5-6% & that's going to harm enough to start a housing crash.
My fear is interest rates returning to normal levels of 5-6% & that's going to harm enough to start a housing crash.
The Selfish Gene said:
that's not harsh Julian
it was more the question if I rent out for 6 months to get the 3rd one through, is it dodgy to then un-rent and live in it.......
I shall call my chap!
Has the mortgage provider on your BTL ever asked to see the contract of tenancy or to prove it’s rented? it was more the question if I rent out for 6 months to get the 3rd one through, is it dodgy to then un-rent and live in it.......
I shall call my chap!
That’s not advice but IMO they don’t care so much.
IJWS15 said:
BTL are more expensive so why would the lender complain if you lived in it rather than rented - you are reducing their risk.
........because it against the terms and conditions of the mortgage to do so, the same as it is to rent out a residential property. The issue is that BTL mortgages are not regulated by the FCA, Residential mortgages are........this links into how the mortgage is underwritten but more importantly the advice...Eg a BTL is classed as an investment so the criteria can be less stringent in some areas........a Residential mortgage is regulated by the FCA so there is a duty of care to ensure correct advice is given.......affordability etc.If you speak to someone who knows what they are doing, they can help the best way of doing this, without knowing committing mortgage fraud.
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