Glasgow Landlord Lacking Direction – HELP!

by Readers Question

9:58 AM, 27th October 2014
About 7 years ago

Glasgow Landlord Lacking Direction – HELP!

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Glasgow Landlord Lacking Direction – HELP!

I’m hoping some of you experienced property people could offer me some advice as I seem to be lacking direction. I have 3 rental properties in and around Glasgow and I’m not sure what to do next. Lacking Direction

Property 1 is valued at around £75,000. The interest only mortgage (6 years left to run) is for £38,500 and is on a tracker at 1.25% monthly interest payment is £40 currently let to good long-term tenants at £450pcm. No early redemption restrictions. Lender is Woolwich – owned it since 1997.

Property 2 is valued at around £100,000. The interest only mortgage (18 years left to run) is for £57,500 at 5.74% light refurbishment mortgage, early redemption period ends this week so free to re-mortgage. Monthly interest payments is £274 currently let to good long-term tenants at £550pcm. Lender is TMW – owned it since Dec 2012.

Property 3 is valued at around £80,000 interest only mortgage (18 years left to run) is for £55,500 rate of 4.29% fixed until Aug 2016 with £3k early redemption penalty. Monthly interest payment is £194 currently let to good long-term tenants at £550 pcm. Lender is TMW – owned it since July 2012.

My circumstances are; aged 45, no dependants and living in my father’s property – so can’t raise any finance on it but will never be homeless! I currently have no other source of income except rent from above properties. I would find it difficult to work full time for an employer due to caring responsibilities. Just successfully completed a law degree.

Although I currently have enough to live on – just, I would like to turn what I have into a business to enable me to live comfortably. Would also like to buy my own property to live in but told I can’t get a residential mortgage without another source of income.

Sorry for being long-winded but basically I want to know what to do next?

Should I sell or re-mortgage and buy some run-down property to refurbish and sell on (but limited by how much could raise re-mortgaging, could I make up shortfall with bridging finance?). Or re-mortgage and get some more deposits for BTL’s (but soon run out of capital for more).

Sure it’s a common problem for experienced property people but it’s a new one for me so any advice gratefully accepted.




Colin Dartnell

10:31 AM, 2nd November 2014
About 7 years ago

Reply to the comment left by "Carolyn Barton" at "01/11/2014 - 21:01":

Hi Carolyn

TMW sounds like one to avoid if you can, 4.99% lifetime tracker is bl**dy expensive!!

I'm back to my if's now, if RBS will say yes then they offer 2.95% fixed for two years, and then reverting to their variable of 4%. Penalties 2% year one 1% year two.

By the way I put 2.99% on my first comment but it is actually 2.95% the figures were from their site so still correct.

I do realise that you might not want ERP's but if you look at the difference of the amount of interest you will pay each year you are paying the penalties anyway with TMW.

Borrow £191,250 at 2.95%, annual interest = £5642 - RBS
Borrow £191,250 at 4.99%, annual interest = £9543 - TMW

So ERP year one at 2% with RBS or equivalent is still cheaper if you have the property a few months while you refurb it as you have only been paying 2.95% for that part of the year.

Colin Dartnell

10:51 AM, 2nd November 2014
About 7 years ago

Hi Carolyn

I should say, I am not a broker I just try and work things out for myself, so please don't take my word for anything without checking things out for yourself.

Also I know you wouldn't be selling the properties you are letting at the moment but the possible re-mortgages on them just served as an example.

Good luck

Howard Reuben CeMap CeRER

15:37 PM, 3rd November 2014
About 7 years ago

Carolyn, I think you actually have many options, including devising a strategy to utilise the equity in your portfolio to capital raise which you can then use to put towards buying either a) additional BTL's or b) a new resi for you.

In fact, if you really need to move out and live in your own home, have you thought about moving in to one you already own? You could capital raise to the max based on your current rental income, then with the lenders permission move back in to it, then use the extra capital raised as deposit(s) on new BTL's and because you're an experienced landlord / investor there are some lenders out there that won't hold you to the min income of £25k either.

These are just off the cuff comments that of course have not been made subsequent to any Fact Find having been carried out and so then above is not formal advice just mooted suggestions for consideration.

It all should always start with a meeting and Fact Find discussion with a professional financial adviser who can assess your full current situation and then based on appropriate research can then present options for which you are actually eligible.

And that is my recommendation .... speak with an experienced and professional financial adviser first who knows the Scottish market (not all lenders lend in Scotland and of course the conveyancing matters are different too) and one person I do recommend is Stephen (

Mark Alexander

16:03 PM, 3rd November 2014
About 7 years ago

Reply to the comment left by "Howard Reuben" at "03/11/2014 - 15:37":

Hi Howard

Next time you speak to Stephen please suggest that he adds a picture to his member profile. Unless of course he's so ugly it would put people off calling him LOL 😉

Welcome back by the way, I trust you enjoyed your well earned break?

Howard Reuben CeMap CeRER

16:17 PM, 3rd November 2014
About 7 years ago

Reply to the comment left by "Mark Alexander" at "03/11/2014 - 16:03":

I'll ask Stephen if he has any inoffensive photos which he can upload so that Property118 readers can see that the H D Consultants' team is a good looking one 🙂

Yes, my break was much enjoyed thank you. Just finishing dealing with my 478 emails, pile of post and many phone calls that had to be returned!

@Carolyn Stephen has worked for me for over 10 years and more than 85% of his business (BTL) is based in Scotland working with many of our prolific BTL investors who - in some cases - have more than 100 properties each. He is very well versed as a financial adviser and his knowledge of lenders, lawyers, missives, HBR's and the overall property / financing strategy is well tested and highly successful.

You have his contact details in the previous link, and with a bit of encouragement I may be able to get him to upload a photo for you too 🙂

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