Mortgage broker for complex / big loan?
Discussion
My brother wants to move house. But the house he has found needs work, so he wants to buy it, fix it, move in, sell old house.
I've spoken to our commercial finance bod on his behalf and he said "I wish you had said it was a development. I can't do it if I know its to live in. Call me again when I've forgotten this conversation, if you get stuck". So that may be an option.
My brother is fairly well off and could sell some assets and buy in cash, but he doesn't want to. He also has his cash in companies and pays himself a pittance to keep tax down. So I very much doubt that Kayleigh down at the CoOp mortgage department would lend him enough for a 2-bed terrace.
I think last time he may have gone self cert, but as far as I know that's a thing of the past.
The sort of numbers he is talking about are he'll end up with a £2m house and may want 50% LTV over 20-25 years when it's all done. I don't know what his net worth is, but it's multiples of the house value I believe.
Any pointers chaps please?
I've spoken to our commercial finance bod on his behalf and he said "I wish you had said it was a development. I can't do it if I know its to live in. Call me again when I've forgotten this conversation, if you get stuck". So that may be an option.
My brother is fairly well off and could sell some assets and buy in cash, but he doesn't want to. He also has his cash in companies and pays himself a pittance to keep tax down. So I very much doubt that Kayleigh down at the CoOp mortgage department would lend him enough for a 2-bed terrace.
I think last time he may have gone self cert, but as far as I know that's a thing of the past.
The sort of numbers he is talking about are he'll end up with a £2m house and may want 50% LTV over 20-25 years when it's all done. I don't know what his net worth is, but it's multiples of the house value I believe.
Any pointers chaps please?
So said:
My brother wants to move house. But the house he has found needs work, so he wants to buy it, fix it, move in, sell old house.
I've spoken to our commercial finance bod on his behalf and he said "I wish you had said it was a development. I can't do it if I know its to live in. Call me again when I've forgotten this conversation, if you get stuck". So that may be an option.
My brother is fairly well off and could sell some assets and buy in cash, but he doesn't want to. He also has his cash in companies and pays himself a pittance to keep tax down. So I very much doubt that Kayleigh down at the CoOp mortgage department would lend him enough for a 2-bed terrace.
I think last time he may have gone self cert, but as far as I know that's a thing of the past.
The sort of numbers he is talking about are he'll end up with a £2m house and may want 50% LTV over 20-25 years when it's all done. I don't know what his net worth is, but it's multiples of that I believe.
Any pointers chaps please?
Dead easy. His company/ies with the cash lend him it. Effectively he becomes his own lender. Very satisfying (and easy) way to borrow. I've spoken to our commercial finance bod on his behalf and he said "I wish you had said it was a development. I can't do it if I know its to live in. Call me again when I've forgotten this conversation, if you get stuck". So that may be an option.
My brother is fairly well off and could sell some assets and buy in cash, but he doesn't want to. He also has his cash in companies and pays himself a pittance to keep tax down. So I very much doubt that Kayleigh down at the CoOp mortgage department would lend him enough for a 2-bed terrace.
I think last time he may have gone self cert, but as far as I know that's a thing of the past.
The sort of numbers he is talking about are he'll end up with a £2m house and may want 50% LTV over 20-25 years when it's all done. I don't know what his net worth is, but it's multiples of that I believe.
Any pointers chaps please?
Groat said:
So said:
My brother wants to move house. But the house he has found needs work, so he wants to buy it, fix it, move in, sell old house.
I've spoken to our commercial finance bod on his behalf and he said "I wish you had said it was a development. I can't do it if I know its to live in. Call me again when I've forgotten this conversation, if you get stuck". So that may be an option.
My brother is fairly well off and could sell some assets and buy in cash, but he doesn't want to. He also has his cash in companies and pays himself a pittance to keep tax down. So I very much doubt that Kayleigh down at the CoOp mortgage department would lend him enough for a 2-bed terrace.
I think last time he may have gone self cert, but as far as I know that's a thing of the past.
The sort of numbers he is talking about are he'll end up with a £2m house and may want 50% LTV over 20-25 years when it's all done. I don't know what his net worth is, but it's multiples of that I believe.
Any pointers chaps please?
Dead easy. His company/ies with the cash lend him it. Effectively he becomes his own lender. Very satisfying (and easy) way to borrow. I've spoken to our commercial finance bod on his behalf and he said "I wish you had said it was a development. I can't do it if I know its to live in. Call me again when I've forgotten this conversation, if you get stuck". So that may be an option.
My brother is fairly well off and could sell some assets and buy in cash, but he doesn't want to. He also has his cash in companies and pays himself a pittance to keep tax down. So I very much doubt that Kayleigh down at the CoOp mortgage department would lend him enough for a 2-bed terrace.
I think last time he may have gone self cert, but as far as I know that's a thing of the past.
The sort of numbers he is talking about are he'll end up with a £2m house and may want 50% LTV over 20-25 years when it's all done. I don't know what his net worth is, but it's multiples of that I believe.
Any pointers chaps please?
But as that's where his cash is it would seem to be the best plan, one way or another.
Note there are legal, accounting and tax rules which regulate loans by a company to a director.
Dead easy? Well, so long as you follow the rules and pay the taxes,
https://www.gov.uk/directors-loans/you-owe-your-co...
Dead easy? Well, so long as you follow the rules and pay the taxes,
https://www.gov.uk/directors-loans/you-owe-your-co...
I would contact your local Handelsbanken. If you go via a broker chances are you’ll end up being referred to them anyway but going direct should mean less in fees. Very sensible underwriting decisions and happy to consider retained profits in the income calculations. They will also do self build type mortgages or lend against properties in a poor state of repair, as long as you can show you’ve got the means to complete the work.
Ungarsee said:
I would contact your local Handelsbanken. If you go via a broker chances are you’ll end up being referred to them anyway but going direct should mean less in fees. Very sensible underwriting decisions and happy to consider retained profits in the income calculations. They will also do self build type mortgages or lend against properties in a poor state of repair, as long as you can show you’ve got the means to complete the work.
I know Handelsbanken, they've declined to deal with my businesses twice now. It seems that the local branch decides what they do and do not want to deal with. Happily other banks were okay to play.But my bro may get on better with them.
So said:
Ungarsee said:
I would contact your local Handelsbanken. If you go via a broker chances are you’ll end up being referred to them anyway but going direct should mean less in fees. Very sensible underwriting decisions and happy to consider retained profits in the income calculations. They will also do self build type mortgages or lend against properties in a poor state of repair, as long as you can show you’ve got the means to complete the work.
I know Handelsbanken, they've declined to deal with my businesses twice now. It seems that the local branch decides what they do and do not want to deal with. Happily other banks were okay to play.But my bro may get on better with them.
LooneyTunes said:
So said:
Ungarsee said:
I would contact your local Handelsbanken. If you go via a broker chances are you’ll end up being referred to them anyway but going direct should mean less in fees. Very sensible underwriting decisions and happy to consider retained profits in the income calculations. They will also do self build type mortgages or lend against properties in a poor state of repair, as long as you can show you’ve got the means to complete the work.
I know Handelsbanken, they've declined to deal with my businesses twice now. It seems that the local branch decides what they do and do not want to deal with. Happily other banks were okay to play.But my bro may get on better with them.
Five years later and they DEFINITELY wanted to do business. I arrived at the office and the same chap greets me, sits me down and tells me that they already had enough exposure to that market. "Good business, but we don't want any more of it".
Clearly I was getting nowhere locally, so our broker introduced me to their local branch. Very shortly afterwards the local office called me to tell me how much they DEFINITELY wanted to do business. I checked their personnel list and saw that the same old fossil still worked for them, so I didn't bother pressing my suit.
Have to laugh at the people who pay themselves the maximum before they get hit for tax but then want a mortgage to buy another house to do up before selling theirs (basically a bridging loan)
They want to have their cake and eat it, in the current climate and anticipated drop in house prices and demand I can't see many lenders queuing up to throw cash at him.
They want to have their cake and eat it, in the current climate and anticipated drop in house prices and demand I can't see many lenders queuing up to throw cash at him.
Chilly for June said:
They want to have their cake and eat it, in the current climate and anticipated drop in house prices and demand I can't see many lenders queuing up to throw cash at him.
I would counter - what is the point of a cake you can't eat....? The whole point of not being a PAYE drone is that opportunities arise. Sometimes they work, sometimes they don't.jjaack said:
Hi Julian,
Thread interuption, sorry,
I would be grateful If you could forward me your Chap in Wales,
please
Jjaack.
P.s. heads up I'll be in touch this week if your about regarding my pension
if thats ok?
I will send you a PM in the morning.Thread interuption, sorry,
I would be grateful If you could forward me your Chap in Wales,
please
Jjaack.
P.s. heads up I'll be in touch this week if your about regarding my pension
if thats ok?
My wife is demanding I step away from my computer right now and spend some time with her!
Chilly for June said:
Have to laugh at the people who pay themselves the maximum before they get hit for tax but then want a mortgage to buy another house to do up before selling theirs (basically a bridging loan)
They want to have their cake and eat it, in the current climate and anticipated drop in house prices and demand I can't see many lenders queuing up to throw cash at him.
To be fair, I need to take out £25k max to live on. When I applied for a 132k mortgage on a second home, over 16 years, virgin money were happy they understood the exact amount I could have taken, and therefore how much I needed to take to fund the second house. They want to have their cake and eat it, in the current climate and anticipated drop in house prices and demand I can't see many lenders queuing up to throw cash at him.
Were I to sell the family home in the next 3 months I could reclaim a proportion of the stamp duty.
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