BTL Mortgage with no accounts

[Jack Kada]

There are possible options if you are not able to verify your income if you own and reside in your own main residence as well as having this separate property which you have let out for at least 6 months. You'd be classed as an 'experienced landlord' then and that may well be the train of thought your current advisor is going down. Is the lender they have recommended TMW (The Mortgage Works) by chance?

The lender Mark mentioned at 2.99% is Clydesdale Bank, a contractor friendly lender who will use your contract rate to assess income which negates the need to reference your Limited Company accounts therefore meaning the fact you do not have 2-3 years finalised accounts is not an issue. That particular rate is reserved if you have 40% equity in the property and comes with a £1,999 fee. They also have a fee free option at 3.49% again at 60% loan to value. If you are borrowing slightly more then they have 3.69% without an arrangement fee or 3.49% with a £1,999 fee. Quite often unless you have a large loan size then the arrangement fee free options work out best over the product (2 year fixed rate in this instance) duration.

Clydesdale will also offer you free legal fees and a free valuation (which isn't very common in the BTL mortgage market) for remortgages which could be a further saving.

Hope that helps?

Very sound advice given here

[barrydidit]

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

That was extremely informative. Especially the bit with the mirror.

[BiggieBig]

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

All- Thanks for responses

Your correct the term is coming to an end not the rate.
Eeven worse orginal lender no longer exists and the merged business don't support BTL business anymore. So I have to either redeem mortgage or they would force sale.

[Power Mortgages Ltd]

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 ?

There are possible options if you are not able to verify your income if you own and reside in your own main residence as well as having this separate property which you have let out for at least 6 months. You'd be classed as an 'experienced landlord' then and that may well be the train of thought your current advisor is going down. Is the lender they have recommended TMW (The Mortgage Works) by chance?

The lender Mark mentioned at 2.99% is Clydesdale Bank, a contractor friendly lender who will use your contract rate to assess income which negates the need to reference your Limited Company accounts therefore meaning the fact you do not have 2-3 years finalised accounts is not an issue. That particular rate is reserved if you have 40% equity in the property and comes with a £1,999 fee. They also have a fee free option at 3.49% again at 60% loan to value. If you are borrowing slightly more then they have 3.69% without an arrangement fee or 3.49% with a £1,999 fee. Quite often unless you have a large loan size then the arrangement fee free options work out best over the product (2 year fixed rate in this instance) duration.

Clydesdale will also offer you free legal fees and a free valuation (which isn't very common in the BTL mortgage market) for remortgages which could be a further saving.

Hope that helps?

[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

[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).

[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.

[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]

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]

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]

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]

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]

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

[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 ?