BTL Mortgage with no accounts

[BiggieBig]

hi,

I have only just formed my company hence no accounts to show. I do have a 6 month contract secured.

My Mortgage term is due to come to an end and I have to redeem the mortgage on a BTL property.

There's plenty of equity in the property my mortgage adviser says there's only 2 options
open to me because of my situation.... The best deal is:

3.59% fixed 2 years
+ 1k arrangement fee

Not sure if this is decent any advise ?
Also any good recommendations for self-employed advisers for BTL mortgages ?

[Mark McBurney@CMME]

Hi BB,

The only hope you have is finding a lender who either will not verify income, which is risky as there is no guarantee - if they do verify income then you're snookered; or to find a lender who will calculate your income from your contract value.

At present there are a very small selection of the latter however there are some out there. Speak with a broker as soon as you can as some mortgage lenders, particularly BTL ones, will be 'introducer only', i.e. you can only apply via a broker.

In terms of rates, probably the best contract-based product at the moment is a 2.99% 2yr fixed rate at 60% LTV, though the fee is higher at £1,999.

Good luck.

Mark

[barrydidit]

Was the second option to do nothing? You would presumably roll onto your lenders standard variable rate until such time as you moved to another product - could you do this for a year and then see what products are available once you have some evidence of your earnings behind you?

You'll pay a higher rate, but £2k of product fees might not be cost effective - it all depends of the loan values.

[Mark McBurney@CMME]

Was the second option to do nothing? You would presumably roll onto your lenders standard variable rate until such time as you moved to another product - could you do this for a year and then see what products are available once you have some evidence of your earnings behind you?

You'll pay a higher rate, but £2k of product fees might not be cost effective - it all depends of the loan values.

I'm assuming from the post that the OP's mortgage term is coming to an end, presumably on an Interest Only mortgage, meaning there is no SVR option as it's the end of the mortgage, rather than the end of any deal?

[barrydidit]

I'm assuming from the post that the OP's mortgage term is coming to an end, presumably on an Interest Only mortgage, meaning there is no SVR option as it's the end of the mortgage, rather than the end of any deal?

Ah right, I was pondering over this wording:

My Mortgage term is due to come to an end and I have to redeem the mortgage on a BTL property.

Nevertheless, the existing lender may be pragmatic and arrange an extension (either on SVR or another product) given the existing relationship.

[Mark McBurney@CMME]

Ah right, I was pondering over this wording:


Nevertheless, the existing lender may be pragmatic and arrange an extension (either on SVR or another product) given the existing relationship.

Unfortunately pragmatism has no place in a post-MMR world, and that would have to be an entirely new mortgage application.

[barrydidit]

Unfortunately pragmatism has no place in a post-MMR world, and that would have to be an entirely new mortgage application.

Even on BTL? I thought that was out of scope. I have slept since those days though

[Mark McBurney@CMME]

Even on BTL? I thought that was out of scope. I have slept since those days though

It depends which lender you're with really; even though BTL is unregulated and therefore largely unaffected by MMR, most lenders who offer both BTL and residential mortgages have implemented the same processes across the board.

[TheFaQQer]

Not sure if this is decent any advise ?

The only advice I can advise is that there is a difference between "advice" (noun) and "advise" (verb).

[northernladuk]

Have a look at this video, it might explain your situation and give you some insight in to your options. If not just turn the sound off and watch it again