Hi all,
Our current property is valued at £350K, has a residential mortgage of 150K, and has been rented out for 21/2 years. We bought it to live in but someone broke in around completion and completely flooded it & by the time wed done 6 months of work to rebuild it I was about have a baby. So we stayed in rented and have been there ever since.
We take our responsibilities as landlords seriously & declare rental income to the IR BUT we havent told the Halifax were renting out/ asked for CTL. Crap I know but weve been dithering about whether to move into it finally (its 10 miles away & in a different town). Having decided to buy where my oldest is in school etc we put it on the market 2 months ago but no luck. Now we've found somewhere were desperate to buy for £315K but have to move fast as theres loads of interest in it.
In a perfect world we would wait til our rented out house sold .. or failing that re-mortgage it to a BTL without early repayment fees to free up some equity to buy the new place with the idea of still selling. BUT our broker says the fact the house has been on the market will scare off many lenders who want serious BTLers who will park their money long term. He thinks we should forget trying to get a BTL where were not tied in for at least 5 yrs and instead raise 25% of the purchase price of the new property either by 1) getting a new residential mortgage (with a higher LTV) on the place were not living in(!) or 2) borrowing the 25% deposit, both options with a view to taking out a new BTL for the new place we want to live in(?)
This all seems a bit weird to me. Surely there are some repercussions on living in your BTL if the lender finds out? Im also worried about the Halifax finding out weve been renting do they ever try to charge back fees? Our fixed rate deal with them has expired and were currently on a not very good SVR call me crazy but Im tempted to just call them and ask them what the options are. When were lucky enough to have around £200K equity in the current house it seems odd theres no simple way of getting some of it out so we can buy. We have reasonable income and good credit statuses if thats relevant.
Thanks in advance for any thoughts - can see there's loads of expertise out there!
Our current property is valued at £350K, has a residential mortgage of 150K, and has been rented out for 21/2 years. We bought it to live in but someone broke in around completion and completely flooded it & by the time wed done 6 months of work to rebuild it I was about have a baby. So we stayed in rented and have been there ever since.
We take our responsibilities as landlords seriously & declare rental income to the IR BUT we havent told the Halifax were renting out/ asked for CTL. Crap I know but weve been dithering about whether to move into it finally (its 10 miles away & in a different town). Having decided to buy where my oldest is in school etc we put it on the market 2 months ago but no luck. Now we've found somewhere were desperate to buy for £315K but have to move fast as theres loads of interest in it.
In a perfect world we would wait til our rented out house sold .. or failing that re-mortgage it to a BTL without early repayment fees to free up some equity to buy the new place with the idea of still selling. BUT our broker says the fact the house has been on the market will scare off many lenders who want serious BTLers who will park their money long term. He thinks we should forget trying to get a BTL where were not tied in for at least 5 yrs and instead raise 25% of the purchase price of the new property either by 1) getting a new residential mortgage (with a higher LTV) on the place were not living in(!) or 2) borrowing the 25% deposit, both options with a view to taking out a new BTL for the new place we want to live in(?)
This all seems a bit weird to me. Surely there are some repercussions on living in your BTL if the lender finds out? Im also worried about the Halifax finding out weve been renting do they ever try to charge back fees? Our fixed rate deal with them has expired and were currently on a not very good SVR call me crazy but Im tempted to just call them and ask them what the options are. When were lucky enough to have around £200K equity in the current house it seems odd theres no simple way of getting some of it out so we can buy. We have reasonable income and good credit statuses if thats relevant.
Thanks in advance for any thoughts - can see there's loads of expertise out there!