Is there really no way to remortgage my BTL as my son lives there?
In 2014 I was able to buy my sister’s 4 bed BLT using my inheritance and some of my pension as a large deposit.
I am with BM solutions on a regulated BTL and the 2 year fixed ends at the end of Dec. My son lives in the property with his partner and their 2 months old baby and one tenant.
I have now been told that not only can I not remortgage but I can’t even get a new deal with BM Solutions.
The repayments will go up by more than £200pm and I will have to stick with that as long as I have family in the property. Does anyone know if there is any alternative to this?
I just want to help my son and his family, they have always kept up with the rent and look after the property.
Many thanks
Viv
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Member Since June 2013 - Comments: 381 - Articles: 61
9:11 AM, 7th December 2015, About 10 years ago
“I have now been told that not only can I not remortgage but I can’t even get a new deal with BM Solutions.”
Hello Viv
There are two elements here;
1) remortgage a regulated BTL
and
2) product switch with BM Solutions
Yes, potentially you can remortgage this arrangement, however the regulated BTL mortgage market is more or less decimated, and is likely to be even further destroyed when the new (yes, even more and new!!) regulations come in to force on March 21st next year. The new rules are known as the Mortgage Credit Directive (‘MCD’) being imposed upon us by the EU and this time BTL regulations have not been overlooked (nor has BTL been overlooked by the budgets recently either as we all know – so lots of changes still afoot).
There are remaining a couple of lenders who offer these (regulated BTL) deals, but of course you need to be fully eligible for them (including subject to minimum income criteria, etc) so it all starts with a comprehensive Fact Find discussion with a professional mortgage broker who can assess your current position and determine which products you might be able to progress with.
2) BM Sols no longer offer regulated BTL’s so you’ve probably had your current arrangement in place for at least 2 years now. Because they now only offer ‘non regulated’ BTL mortgage products so you either have to remain on their variable rate, or you will have to remortgage.
Alternatively – and I know you want to help your son, but …. – he will have to contribute some or all of the new increased mortgage payment.
So, it’s all about the lesser of three evils, none of which you might like to do, but one of which you will have to.
My profile link takes you to my contact details should you wish to discuss further.
Hope this helps.