Mortgage Query - Buy To Let

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    Mortgage Query - Buy To Let

    Good Afternoon,

    Myself and my wife are looking to rent out our home that we live in. It is our only property and we are moving to Ireland but will look to return at a future date (maybe 3-5 years) to the property.

    I sent in an application for a CTL a few months ago but it was refused due to the mortgage product that we are in, fair enough. It is a Barclays family springboard product so essentially 100% with a family member placing 10% as a guarantee into a Barclays bank account. We looked at moving earlier and selling, but the early redemption fee made it not worthwhile.

    We live beside a letting agent and have a good relationship with her so happy to pay and let her manage the property while we are away.

    I have talked to Barclays and they have said to put another application in for CTL a week before the end of the product. Due to the 100% mortgage, our LTV is very high (85-87%).

    If Barclays were to reject the CTL, then we would need to remortgage, which would be difficult unless we injected some capital to reduce the LTV. Does us residing in Ireland also affect applying for a BTL mortgage?

    When looking at selling up our property was valued at between £260-265k by 3 estate agents. I know they might try to up the valuation to get you to sign with them, but if we used that as a benchmark how like would it be that a new lender would value it as lower (even just £5-10k), therefore increasing our LTV?

    If anybody has any general advice on the situation it would be more than welcome. Has anybody seen or heard of BTL mortgages for 85% LTV?

    Thanks for your advice,

    Fitz

    #2
    There are a very small number of lenders who will lend up to 85% BtL mortgages , rates are slightly higher than the norm but beggars can’t be choosers.
    You do however have a potential issue regarding eligibility in so far as you are moving to another country and might be considered to be an ExPatriate , in which case the possibility of securing such a high LtV is made that much more difficult and impossible if your potential employment is linked with a Non Major employer with international links.
    Given the state of the property market in certain parts of the U.K. it is current an accepted fact of life that valuers are choosing to err on the side of caution in terms of property valuations.
    I would suggest you consult a good Mortgage Advisor but beware of anyone suggesting ways of circumventing the normal criteria, you cannot risk being found to have procured Finance by uttering false declarations.

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      #3
      Most BTL mortgages are offered up to 75% LTV..

      Comment


        #4
        Originally posted by loanarranger View Post
        There are a very small number of lenders who will lend up to 85% BtL mortgages , rates are slightly higher than the norm but beggars can’t be choosers.
        You do however have a potential issue regarding eligibility in so far as you are moving to another country and might be considered to be an ExPatriate , in which case the possibility of securing such a high LtV is made that much more difficult and impossible if your potential employment is linked with a Non Major employer with international links.
        Given the state of the property market in certain parts of the U.K. it is current an accepted fact of life that valuers are choosing to err on the side of caution in terms of property valuations.
        I would suggest you consult a good Mortgage Advisor but beware of anyone suggesting ways of circumventing the normal criteria, you cannot risk being found to have procured Finance by uttering false declarations.
        Good advice - thank you very much.

        My product finished at the end of September (moves from 2.9% to 3.2%) so I suppose I will wait until then, and put in the request for the CTL with Barclays.

        I'll hold off instructing the letting agent to do anything until then.

        If that is rejected (I don't see why it would) then I'll talk to a mortgage advisor.

        If that fails then we sell up. Which would be sad as it's a lovely period house.

        Comment


          #5
          I hope indeed that your wishes are granted, unfortunately Barclays have not been consistent in their underwriting assessments resulting in much wailing and gnashing of teeth , and that is me a broker.

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