Posted on 12 January 2013 by Matt
I am about to buy a house which is currently in two flats using a short term loan from a relative. When I complete, my solicitor will merge the deeds and I will, with a lawful development consent from the local authority, do sufficient but limited work on the house to return it to a single dwelling which I want to live in with my family indefinitely. I am nervous that I will not be able to get a residential mortgage 2 months after completion and will let down my generous relative. Do you think I will find more than one mainstream provider who will give me a mortgage? Thank you.
There are three possible issues here. One is where the property hasn't been owned by you for 6 months. The second is if a lender classes the property as newly converted. Where lenders consider the property to be newly converted then the loan to value is a key factor in their decision to lend. The third is that some lenders would consider you repaying the genorosity of your relative as debt consolidation.
However despite these potential issues, as John Charcol is an Independent, Whole of Market broker, then I would be fairly confident that we could find more than one residential mortgage option for you.
If you would like to discuss your enquiry in more detail, then please let me know and I'll arrange for you to speak to one of our consultants.
More than mortgages, talk to me about:
Financial Protection | Investments | Personal and Corporate Pensions | Home Insurance
General Insurance | Valuations | Conveyancing | Wills | Home finders
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 necessarily 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.