Mortgage woes - worth talking to broker or not?

[cashmax]

Got a good friend who has a mortgage of circa £160k on a property with a value of £618K. Wants to buy a house at £750 but his mortgage company have refused to port the mortgage. (Halifax)

Couple, both self employed and figures not that good so clearly not meeting some criteria. Also they have a spare room/flat in the old house which will also exist in the new house which yields £1K per month using airbnb, which current mortgage firm won’t take into account.

I would have thought that with such a good LTV% he has some options available, but he seems to think there is little point in talking to a broker.

It’s been a long time since I last dealt with a mortgage and I know things have changed. Just wondered what people closer to the market think about this.

[paulrockliffe]

Should always go via a broker in my view - When I last used a broker I compared their deal with going direct and the total fees were £1000 vs £1500 direct and the rate was a little better. Sarnie on here is ace too.

[JulianPH]

Listen to what Sarnie has to say. He seriously knows his stuff.

[geeks]

Another recommendation for Sarnie

[Killer2005]

Lender would be unlikely to use the rental. For the old property they will see it is as not sustainable, and they can't use expected future income towards the case.

Sounds like they may be failing affordability, it may be a low ltv but if its not meeting then it's not going to help.

Sarnie might be able to put some figures through for you/them.

[Bikesalot]

Just tell them to talk to Sarnie on here – can’t get simpler than that.

Edited by Bikesalot on Tuesday 18th June 11:56

[XJ75]

We have a BTL with an AST in place but some lenders still won't consider that as income. They assume it's empty and list council tax, mortgage payments and service charges as your own outgoings. I guess they have to consider the worst case scenario as there's no guarantee it will always be tenanted.

[Sarnie]

Many thanks for all the people posting positive stuff for me, it's very, very much appreciated!

OP, I'd be more than happy to have a chat with your friend........it won't cost anything other than his time.......and worst case scenario he has it confirmed that it's not possible........

[JulianPH]

Sarnie said:

Many thanks for all the people posting positive stuff for me, it's very, very much appreciated!

Oh, just get over yourself!!!

[geeks]

JulianPH said:

Sarnie said:

Many thanks for all the people posting positive stuff for me, it's very, very much appreciated!

Oh, just get over yourself!!!

[JulianPH]

geeks said:

[red_slr]

He is going to need income of c.£70k, IMHO.