Ask the experts
About our experts...
At John Charcol, we are constantly asked for advice by borrowers on what they should do when it comes to mortgages. As such, we created this section so that you can submit your questions to our experts. The answers are provided by a number of people who have years of experience in the mortgage market. The team is led by Peter Woodward who spent his formative years as an underwriter with one of the major UK lenders and the last 10 years in our Technical Department along side Ray.
So please do submit your question and we will do all we can to answer it as quickly as possible
Please be aware that these answers can only be generic and no personal recommendations can be made.
Posted on 07/06/2010
I have a residential mortgage on a property valued at £245k, outstanding is approx £ 208k. Since I moved in with my boyfriend they lender agreed to buy to let conditions. Due to renew it now, it appears the conditions have been changed and I need to get a rental income of 125% of the mortgage payment. Unfortunately this is not the case I currently receive approx 95% of the mortgage in rent. Can you tell me how is this likely to proceed?
Categories: Buy-to-let, Special circumstances
Posted on 28/05/2010
I own a bungalow which has a tenant, currently paying £500 p/m rent. I do not have a mortgage on this property. I wish to raise £20,000 to renovate & update the property. Once the work is finished I will sell the property. The shorthold tenancy agreement ends in December of this year. I am 59 years old and other than the rental income I am self employed and my current net profit is only in the region of £7,000. I have no current borrowings or county court judgements. The property is currently worth £140,000 and on completion of renovation will have a value of £175,0000.
Categories: Buy-to-let, Remortgaging
Posted on 20/05/2010
I jointly own a flat worth £140,000 with an outstanding mortgage of £112,000.
I also jointly own a freehold UK holiday let property worth £140,000 with an outstanding mortgage of £52,000. This property gives a gross income of £9500.
We have unsecured debts of £33,000 from renovating the holday let property.
My income is £29,000 and the income of my partner is £12,500.
My partner and I would like to permanently move to the holiday let property and rent out our current home on a short assured tenancy.
Is it likely that we would find lender who would remortgage our holiday let to a regular mortgage and include the outstanding unsecured borrowing within the new mortgage and also get a buy-to-let mortgage on our current home? The estimated achievable rent would be £550 monthly.
Categories: Buy-to-let, Holiday homes, Remortgaging, Second properties
Posted on 10/05/2010
We bought a flat on first time buyer mortgage. Because of job we need to relocate and we want to rent out our apartment. Do we need to change our mortgage?
Categories: Buy-to-let, First-time buyer, Special circumstances
Posted on 05/05/2010
I currently own a flat worth £110000 with an outstanding mortgage of £88000. I would like to also buy my parents house which is worth £150000 but they are selling it to me for £120000. I earn around 50k self employed could I remortgage the flat to buy my parents on buy to let or put my flat on buy to let.
Sorry for the long question I'm just a little confused.
Categories: Buy-to-let, Special circumstances
Posted on 28/04/2010
When my wife was single she got a mortgage to pay for her father's house, the property deed never had her name only her father. She had to get life insurance and a endowment policy (which we still pay in) but the mortgage has been paid off. I own a property only with my name we want to buy a new property for letting. Is she eligible for First time buyer stamp duty relief since she has never owned a property although has had a mortgage before?
Categories: Buy-to-let, First-time buyer, Tax issues
Posted on 23/04/2010
Is there still a 100% mortgage? I am currently looking to move to a bigger house, but already have a mortgage. Can I swap my current one to a buy to let in order to get my new mortgage? How can I raise the 10% deposit?
Categories: 100%+ borrowing, Buy-to-let, Let-to-buy, Raising capital out of property
Posted on 22/04/2010
My son and his girlfriend bought a house together a year ago on a fixed rate mortgage but have now split up. My son wants to keep the house on himself, but rent it out for now. Is there a way for him to get her name took off the mortgage without remortgaging or will he be able to change the mortgage to a buy to rent mortgage?
Categories: Buy-to-let, Remortgaging, Special circumstances
Posted on 18/04/2010
I have two property's that I own out right, one is worth about £65000 and the other about £80000. I also have a third with a 5£0000 mortgage on that one is worth about £130000. What is the best way to raise funds to purchase another property?
Categories: Buy-to-let, Raising capital out of property, Second properties
Posted on 31/03/2010
I have a residential mortgage, but I want to let this out to a mum,who is a professional, and her child. It would be let out through a rental agency who would also be managing the property. I don't want to sell my house as I am moving back in with family due to family circumstances. I have not missed any mortgage payments as yet. I was asked by the bank when requesting l/lord insurance 'did i get permission to let the house out?' Replied no. I want to keep the house for my children and move back in at some stage. Pleasea dvise what I should do.
Categories: Buy-to-let, Let-to-buy
Posted on 14/03/2010
I want to change my mortgage to a buy to let soon as I am moving in with my partner. Prices are down at present and I want to hold onto my property. I put a 10% deposit towards my flat, you need a 25% for a btl do i need to put 15% or another 25% towards it?
Categories: Buy-to-let
Posted on 27/01/2010
I am planning on buying my council flat and living in it for a short while on a Fixed rate mortgage, I then plan to let the property. Will I have to change my mortgage to a buy to let mortgage or can it run on a standard mortgage? It will remain my only property.
David
Categories: Buy-to-let
Posted on 13/01/2010
Hello,
If I change my current mortgage to a buy-to-let is the price likely to increase?
Categories: Buy-to-let
Posted on 30/08/2009
I have a BTL mortgage of £140k on property bought for £177,000 now valued at £200,000. Currently on a base rate tracker of 0.7% rising to 0.9% next year, rental income is £9600pa. I also have a residential morgage of £120,000 on a property valued at £150k but would like to re-mortgate to a BTL as this is also rented out for £9100pa. Would it be possible to re-mortgage the second property and raise some capital to buy a third without getting out of my tracker mortgage as I am unlikely to get that kind of deal again.
The short answer is no.
I am a little puzzled by your question because if you remortgage you would by definition be redeeming your tracker mortgage. It would, in any case, not be possible to remortgage the second property except for a smaller amount because the maximum loan to value (LTV) any lender is currently offering on a buy to let mortgage is 75% and your mortgage is currently 80%, based on your estimated value. Therefore unless you have some cash which could be used to reduce the mortgage your only option is stay with your existing lender, and as the property is let out they would certainly not offer you a further advance in view of your LTV.
If you haven’t told your lender that the property is let should ask for permission to let as otherwise you are breaking the terms of your mortgage offer. Most lenders will agree to this but will charge an admin fee, which, depending on the lender, could be several hundred pounds or even go into 4 figures. Also the lender will probably increase the interest rate when you come off your initial rate, and possibly before, and may impose the early repayment charge if your mortgage currently has one and they insist you switch to a higher rate.
Categories: Buy-to-let, Remortgaging
Posted on 08/06/2009
I own outright a house valued at 350,000 and I currently have a 2nd home value at £125,000 with an outstanding mortgage of £50,000. I would like to purchase another home as a 3rd home valued at £175,000. I have a cash deposit of £100,000 - would it make more sense to pay off the £50,000 on the 2nd house and £50,000 off the third or pay it all of the 3rd?
I can afford the repayments no matter the outcome but what would make more sense - pay off 2nd house fully or pay larger amount off 3rd?
Categories: Buy-to-let, Remortgaging, Second properties
Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not neccessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.
We recommend you seek professional advice with regard to any of these topics where appropriate.