Impossible to Get a Remortgage?

by Readers Question

8:58 AM, 22nd December 2016
About 3 years ago

Impossible to Get a Remortgage?

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Impossible to Get a Remortgage?

Hi there. I have been renting a property out for the last 15months (having lived in it beforehand) and have really struggled to get a mortgage.mi2

Current Rent: 620/pw
Current Mortgage: 417,000
Property Valuation: 650,000
Employment: Aug 2016 onwards (so 4months continuous employment)

I have been told that the criteria is too low from so many different lenders despite the income being almost 2.5x the potential monthly interest rate. I find this crazy, but also understand the reasons behind it. I have just instructed my mortgage advisor to conduct a mortgage product transfer to save me 400 GBP per month compared to their SVR.

Surely many landlords in the capital must be falling foul of these remortgage rules?

Im a first time poster so any comments or thoughts are welcome. I will also be posting on a new thread regarding a conversion project I am currently working on.

Tks guys

Neil



Comments

Neil Patterson

9:32 AM, 23rd December 2016
About 3 years ago

1 x 12 to get annual / 145% / 5.5%

John Constant

13:18 PM, 23rd December 2016
About 3 years ago

Hi people don't be so downcast!

There are remortgages available. As it stands at the moment, I have a lender available at 125% of pay rate, currently 2.99%! Of course, other criteria is applicable and it all depends upon your individual circumstances.

As I understand it, the minimum stress test is 5.5%, but there seems to be no figure for the % coverage. Some lenders are at 145%, others 140%, some 125%. Some are taking a flexible approach depending upon your tax situation. Others are allowing "Top-Slicing", where your personal income can be taken into account if he rental figure cannot be met.

The market is becoming incredibly complicated now, as far as mortgages for the BTL landlord are concerned. If you are in the situation where you need to remortgage, click on my details to contact me at HD Consultants. Talk to me!

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