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Our property investment expert is Jeni Browne, Sales Director at
Mortgages for Business
www.mortgagesforbusiness.co.uk
Tel: 0345 345 6788
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Question
Bridging loan availability
What are the chances of getting a bridging loan during these difficult times? I understand lenders have pulled out of this risky area but I am guessing this is only for customers who need a bigger LTV?
I am a looking into a development project and have experience in this area but am keen to get moving before the stamp duty deadline.
Answer
There was a temporary hiatus from the lenders during the lockdown, mainly due to the stop on valuations.
Since valuations resumed, the majority of lenders have returned to the market so I’d recommend speaking to your broker about the bridging finance you require and I’m sure they’ll be a suitable lender.
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Question
Moving to another country – can I use buy-to-let mortgage?
My husband is starting a new job overseas in early 2021 and we are moving for two years. We want to rent out our house for the duration and we are also due to remortgage.
We think a buy-to-let mortgage might be better as we can use interest-only but, equally, we won’t be paying off the capital so this is not idea. On the other hand, are we allowed to use our residential mortgage whilst we have tenants? Any pointers would be great!
Answer
How exciting! This situation is not uncommon, so, you’ve got a couple of options. Firstly, I would speak with your existing residential lender to let them know you’re leaving the country and see whether they will grant a ‘consent to let’ for the two years.
If not, a whole of market broker should have access to buy to let lenders that will lend to expats, and rates on both a capital and interest-only basis.
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Question
Airbnb – can I get a buy-to-let mortgage?
I am considering buying a small apartment in a seaside town on the south coast of England to rent out on Airbnb.
I have done lots of research and the area is a tourist boom town so I am confident I can get plenty of business. I wondered, however, what kind of mortgage I would need?
My friend suggested a residential would not be appropriate in this case as it’s not my main residence. Do I need a buy-to-let?
If it is relevant, I own my own house – jointly with my husband – and we have a mortgage on this.
Answer
Firstly, it does help that you already own your property, as some buy-to-let lenders have restrictions on first-time buyers.
Airbnb has really changed the buy-to-let and holiday rental mortgage markets in the last few years! Quite a few buy to let lenders will accept Airbnb properties in their criteria; however, you can always consider a holiday let mortgage, which you can read more about here.
An experienced broker should be able to help you find the most suitable finance option to suit your situation.
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Question
Can I remortgage following a mortgage holiday?
I took a mortgage holiday during the lockdown as my tenant asked for a rental freeze. This was duly agreed with my lender and now – thankfully – my tenant is back at work and due to pay the first payment this month.
I am slightly anxious about what will happen when I remortgage, however. My deal is up for renewal in January and I would like to know a bit more about how the mortgage holiday might impact my chances of getting a competitive deal – or, indeed, any deal. Do you have any advice?
Answer
It’s been a difficult time for many landlords, and you are not the only one in this situation, don’t worry!
The majority of buy-to-let lenders are happy to lend to those who’ve previously taken a payment holiday but who are now making repayments.
They will conduct more in-depth financial checks to make sure your finances are back on track; so be prepared for extra questions!
Most lenders are tending to deal with applications like yours on a case by case basis. As your need for a mortgage payment holiday was legitimate, and you’ll have correspondence with your tenant to prove it, I would be surprised if you had any issues remortgaging.
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