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 01/06/2010
My partner and I are joint names on current mortgage for £132k with no positive equity due to current market. My question is if my lender agrees coulw we rent out this property and obtain a 2nd mortgage for approx £125k, we earn combined approx £50k and will have approx 25k deposit. We have found a home we love and could live in for a long time.
Categories: Let-to-buy
Posted on 22/05/2010
We currently live in a flat worth around £95/100k, our mortgage is £63k and we were wondering if it would be possible to change our flat to but to let and buy a house around £130k?
Categories: Let-to-buy
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 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 25/03/2010
my property is for sale and i wish to buy another property (no chain either side) mine is on the market for £400,000 and the new property is £455,000...i have a total of £37,000 debt including my mortgage (£24000) and I am paying £2,500 per month against all of this....I wish to borrow £165,000 in total, including my existing debt which should be greatly reduced by the time the transaction goes through but my income is from different self employed sources...could i self cert or would this cost loads...i had thought of trying to keep both and do 1 as buy to let but not sure whether this would be viable....credit history A1.
Categories: Let-to-buy, Self-certification
Posted on 15/03/2010
My Grandmother currently has her house on the market for £150k, which is a realistic price, but the market is really slow and she is not getting any viewings. She has fallen in love with a bungalow, which I is worth between £120k & £130k. Can you suggest anyway that she could buy the bungalow before her house sells? She is 76.
I do have a property myself, owned outright valued at approx. £80k but I am in the process of moving myself and do not want to affect how much I can borrow in my own right, I personally need between £50-£75k to move 'up'. Although I have complete faith that she would be able to keep up with any payments I am concerned that if I help her out I won't be able to get what I want when I need it. Could she do a buy to let on her own house? Or could I do a buy to let on the bungalow with no effect on my mortgage options?
Categories: Let-to-buy, Mortgages in retirement
Posted on 06/02/2009
I have a property worth 140-150k.
I wish to buy a second property which needs renovated for 140k let to buy seems the right way but how do i raise the capital for self cert deposit now as i think the property will sell soon
From the limited information available your proposal only looks feasible if you have little or no mortgage on the existing property. Self cert mortgages are still available but the maximum loan to value would be 75%.
Categories: Let-to-buy, Raising capital out of property, Remortgaging, Self-certification
Posted on 08/05/2008
I have a house in my sole name on the market for £350,000 with £130,000 left on the mortgage. In the current climate it's not shifting. We don't want to lose the house we want to buy which we have agreed a fee of £440,000 for. I am married and my wife has no mortgage but earns about £35,000 per annum. Am thinking of getting a buy to let in her name for our current property using it to raise a 10% deposit on the new house and putting that solely in my name.....is this a sensible way to proceed in order not to lose the house we want to buy ? Or is a bridging loan a better option ?
Categories: Let-to-buy
Posted on 29/04/2008
I want to buy a new home. I have a £159k mortgage on a house which is not selling at the moment and the rental figures for this house won't cover 125 % of the mortgage payments. I also have a holiday house in Scotland with no mortgage.
Can I use the Scottish home as equity for a new loan?
Eileen
Categories: Current rates & the market, Let-to-buy
Posted on 29/04/2008
My partner and I currently have a joint mortgage with Nationwide. Our property is worth approximately £200K. The outstanding balance is we owe is £130K. Our total take home salaries amount to £60K.
Categories: Buy-to-let, Let-to-buy
Posted on 05/02/2008
Hi, I currently have a 5 year fixed residential repayment mortgage with the Nationwide. Back in October, due to personal circumstance and the possibility of losing my job, I rented out my house and moved in with my parent until I can get back on my feet. I have been told by Nationwide that I can keep the mortgage as it is and I can rent the property for 3 years after which they will review my status i.e. decide whether to leave things as they are or push me on to another mortgage. I asked them if there are any charges or will I get into trouble for not having told back in October. They have said it is not a problem as long as I have told them now. They have setup an application for me which they have agreed in principle and told me not to worry about charges because there are non - everything stays as it is for 3 years. Is this true?
Categories: Buy-to-let, Let-to-buy
Posted on 14/12/2007
We have a London flat, (no mortgage outstanding) currently on the market @ £1.5million. We have made an offer of £455,000 on a leasehold (113 years) flat in Bath. I am 78 my wife 79, our joint pension amounts to £50,000 pa. Would we be able to get a "let to buy" mortgage on our flat in the event of delays in the sale, in order not to lose the Bath flat?
Categories: Let-to-buy, Mortgages in retirement
Posted on 04/10/2007
Our house is nearly mortgage free (£20K left with virgin one) and it's market value is £525K. My son has started working and earns £35K, we are thinking of moving to a bigger house near his work but want to keep our existing house and rent it (rent value £1800/month). I earn around £80K. What is the max amount we can raise. We are thinking of buying a house for around £750K max. Is this possible and what are our options? Please advice.
Categories: Let-to-buy, Remortgaging
Posted on 01/10/2007
I currently have a 2 bed flat with a mortgage on it. I would like to buy a house with my partner and let my flat to cover the current mortgage on that. What kind of products should I look for, will I need to change my existing mortgage to a buy-to-let before I can get a mortgage on a new property?
Categories: Buy-to-let, Let-to-buy
Posted on 20/08/2007
What does rental cover mean?
Categories: Buy-to-let, Let-to-buy, Special circumstances
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.