Any Property Geniuses know of low income remortgage companies?

by Readers Question

10:35 AM, 29th July 2016
About 2 years ago

Any Property Geniuses know of low income remortgage companies?

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Any Property Geniuses know of low income remortgage companies?

My partner and I have 4 fixed mortgages coming to an end over the next couple of years. The problem we have is I would like quit my 9 – 5 job move to the countryside and start working part time to enjoy the hard work we’ve put into building our portfolio. My partner is self employed so if I did cut back between us we’d earn approx £25000 not including any property income.nine to five

My question for you property geniuses is: Are there any mortgage companies out there who would be willing to let us re-mortgage our BTL properties even though our income has dropped. I’m currently earning £25000+ which made it no problem getting the original BTL mortgages of approx £60,000 (75% LTV). My broker who we love has been very good for us but is warning me not to quit my job as I won’t be able to get a re-mortgage (not sure if this is because they would no longer be needed). I guess what I’m saying is we’re worried we’ll just start to enjoy the perks of our hard earned cashflow and it will all dry up as we won’t be able to re-mortgage and our current fixed (2% – 3%) will automatically turn into trackers at 5%, 6% or even 7%

Any help/hints would be most appreciated.

Mark



Comments

Neil Patterson

10:44 AM, 29th July 2016
About 2 years ago

Hi Mark,

I am no genius lol, but I have been in and around the industry for longer than hopefully I look!

All lenders will have some form of income criteria. Some the minimum is indeed zero, some 10K pa, some 25k pa some 35k joint pa. You get the picture.

Therefore you need to match minimum income and employment history criteria with criteria to fit the property, LTV, Rental income stress testing and your other personal circumstances.

Therefore to say for definite you need to complete a full fact find with a regulated IFA/broker so that a whole of market search can be carried out compliantly.

One tricky criteria is often easy to overcome but the more you add the narrower the search options.

If you need any help you can always email me npatterson@property118.com and I wish you luck getting out of the rat race 🙂

Denise G

11:07 AM, 29th July 2016
About 2 years ago

I just re-mortgaged one of our BTLs with Birmingham Midshires (but admittedly with quite a low Loan to Value and a not so stunning interest rate due to the limited choices available to me because it was based on rental income and my pension (which is similar to the figure you mention). But it opened up a possibility I hadn't thought would be there.
Mark A put me onto Robert Newman who sorted it for me

Denise G

11:14 AM, 29th July 2016
About 2 years ago

Reply to the comment left by "D D" at "29/07/2016 - 11:07":

I was trying to edit the above comment to make more sense and give more detail but was logged out midway and now edit doesn't seem to be an option for me. I can't be bothered to do it all again as the main thrust of what I was trying to say is the same and I expect either Robert or Mark will probably respond anyway in a minute LOL

H B

20:45 PM, 29th July 2016
About 2 years ago

Remortgaging will be made much easier if the rental value is high and the properties have a strong cash flow. If the net income is low the lenders will be much warier.

The PRA is going to force lenders to show that all properties are viable on an interest rate of 5.5% after costs.


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