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Hints & Tips from Christine Newell

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Useful tips I have learnt this week

Fleet Mortgages will allow single title multi-unit properties on a Buy to let basis. This is where a property is split into a number of self-contained units but are registered on one freehold title.  Fleet allow up to 10 units on 1 title. Other lenders who allow such transactions are Woolwich up to 6 units on 1 title, Paragon up to 20 units, and Shawbrook and Aldermore Commercial who will also consider these further. The latter 3 are all available via Brightstar.

NatWest will allow a client to let their existing property out and move in to rented accommodation or move back in with family. Every case needs to be discussed on an individual basis.

 

With TMW if your client is under the age of 70 at application stage, The Mortgage Works has no maximum age limits on their Buy to Let range. Other lenders who allow experienced landlords to borrow up to the age of 85yrs are Precise Mortgages, Aldermore, Kent Reliance, National Counties, Harpenden and Fleet.

Hinckley & Rugby offer a good pay rate calculation for properties with lower rental yields.  Their variable discounted product sits at 2.89% currently and rental yield required is 135%. They lend in England and Wales only and have some other caveats such as minimum loan size and min age etc. Precise Mortgages also offer pay rate calculations with their LIBOR tracked products, 3.70% at 125%.

 

With Aldermore Bank, if rental income is short then personal income can be used to make up the difference within Aldermore’s stress rate calculation. Personal income must be proven in all circumstances.

BM Solutions will consider capital raising for any legitimate purpose on a Buy to let, apart from injection of capital into business, gambling and paying a tax bill.

NatWest will allow non-homeowners to purchase a buy to let.  These clients are generally classed as first time buyer/first time landlords and for most other lenders this is a no go.

If a property is above a commercial unit you can email an underwriter at Kent Reliance for them to consider the possibility of lending. For example a property that was above a Blinds shop which had an estate agent one side and a fish and chip shop the other was considered as suitable security as it was not directly above the fish and chip shop.  You can email underwriters@krbs.com & they are also available via Brightstar.

Best regards,
Christine Newell
Mortgages Technical Director 
Paradigm Mortgage Services LLP

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