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NoMoreKickingCans
Posted: 09 September 2021 17:41:46(UTC)
#21

Joined: 26/02/2012(UTC)
Posts: 4,470
I think plenty of lenders will do this sort of thing TBH.
The mortgage is secured against the property at the end of the day, so the lenders money is protected by that if you default. As long as the LTV gives the lender a good safety margin I believe plenty will do it.

I myself have an interest only mortgage at 40% LTV, and I used my investment assets to show that I had the funds to pay off the capital at the end of the term. I went straight to a high street lender, no middle man required. I think they had a rule about only recognising 80% of the sum invested - but as I had 3 or 4 times the loan it was no problem. I had to provide printed copies of ISA & SIPP statements.

I think the only issue may be demonstrating sufficient income to pay the interest over & above living costs. I am not quite sure how they treat pension income & income from investments - I did hear of a friend who had problems but was older.

Some silly policy rules seem to get applied in an attempt to protect the stupid and those that take on too much risk. But the bank have the property as security - in a less regulated world I don’t think they would bother with many other checks.

You need to plan for your own safety margins of course (interest rates could be triple in 5 years time) or you could end up like this if you over-use leverage...

https://www.cnbc.com/2021/09/08/...-and-heads-for-sale.html
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Mat1
Posted: 09 September 2021 19:49:37(UTC)
#22

Joined: 03/05/2017(UTC)
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NoMoreKickingCans;185385 wrote:
I think plenty of lenders will do this sort of thing TBH.
The mortgage is secured against the property at the end of the day, so the lenders money is protected by that if you default. As long as the LTV gives the lender a good safety margin I believe plenty will do it.

I myself have an interest only mortgage at 40% LTV, and I used my investment assets to show that I had the funds to pay off the capital at the end of the term. I went straight to a high street lender, no middle man required. I think they had a rule about only recognising 80% of the sum invested - but as I had 3 or 4 times the loan it was no problem. I had to provide printed copies of ISA & SIPP statements.

I think the only issue may be demonstrating sufficient income to pay the interest over & above living costs. I am not quite sure how they treat pension income & income from investments - I did hear of a friend who had problems but was older.


The main concern is your income and what they decide to count as income.. some lenders will not even count BTL profits and most don't seem to like the idea of stock portfolios.
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NoMoreKickingCans on 10/09/2021(UTC)
Hans Seidel
Posted: 21 September 2021 02:30:31(UTC)
#23

Joined: 07/09/2021(UTC)
Posts: 26
Have they ever tried to contact the people who worked for the mortgage as well? They do have some kind of insurance for this one and I think they should give this one a chance to get the money back as well. I think that is one of the unspoken rights that we all tend to deal with at this point in time so make sure to get it done.
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Mr GL
Posted: 02 October 2021 09:56:12(UTC)
#24

Joined: 18/10/2020(UTC)
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So further to the above - I have been offered the following from a high street bank via Private Finance broker...

Borrow £210,999 (including Bank's fee of 999)
Rate 0.94 fixed for 5yrs (30th Nov 2026)
Repayment over 19 years
Early repayment charges apply
Conveyancing and Valuation paid for by Bank

add in the fees to the broker and this is an effective borrowing / cost of money rate of 1.13% over the 5 years...

Valuation is being done next week and then should be good to go... our problem was that I have no predictable salary so we ended up getting the loan based off wife's income and the income we get from investments with some acknowledgement of the value and income profile of our SIPPs. They never asked to see the valuations of the ISAs or kids bare trusts etc..
Ended up not needing the asset based lender - they would have lent us more but the rate and the fees were less appealing as I was fixated on getting close to 1% and this is more than enough for our building project needs and with money left over to make full ISA contributions + other investments etc...

Also with UK inflation recently 3.2% and expected to increase my NS&I inflation linked notes (of which we have a decent chunk) are 'earning' more (and they are tax free too) than the cost of the mortgage... bonkers...
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6 users thanked Mr GL for this post.
Chris1986 on 02/10/2021(UTC), Tim D on 02/10/2021(UTC), TheWurzel on 02/10/2021(UTC), Ad B on 02/10/2021(UTC), Newbie on 02/10/2021(UTC), Mat1 on 02/10/2021(UTC)
TheWurzel
Posted: 02 October 2021 13:53:01(UTC)
#26

Joined: 11/02/2018(UTC)
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That's great news, congratulations - it almost seems too easy doesn't it? We moved in to our new home on Thursday - the whole financing process was seamless.
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Mr GL on 02/10/2021(UTC)
Newbie
Posted: 02 October 2021 14:51:26(UTC)
#27

Joined: 31/01/2012(UTC)
Posts: 3,819
Are you allowed to tell us who the lender is.

My wife has quit her P/T job (rather keeping her sane vehicle) but still has income, mainly from BTL's and has found something else to buy (her work colleague's mothers property and I would prefer to take a mortgage as opposed to outright purchase. Thus in need of a good broker.

My bankers do not normally entertain such means but willing to look at it but have said it will be expensive and treated as a loan as opposed to a mortgage.
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Mr GL
Posted: 02 October 2021 15:29:06(UTC)
#28

Joined: 18/10/2020(UTC)
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Newbie;188736 wrote:
Are you allowed to tell us who the lender is.

My wife has quit her P/T job (rather keeping her sane vehicle) but still has income, mainly from BTL's and has found something else to buy (her work colleague's mothers property and I would prefer to take a mortgage as opposed to outright purchase. Thus in need of a good broker.

My bankers do not normally entertain such means but willing to look at it but have said it will be expensive and treated as a loan as opposed to a mortgage.


Private Finance are the broker - +44 (0)1743 211 855 - I think that if you have a slightly funky set up then its best to go through a broker... these guys seemed pretty switched on and are a whole of the market broker so not tied to a limited number of providers...
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Newbie on 02/10/2021(UTC)
Newbie
Posted: 02 October 2021 16:01:07(UTC)
#29

Joined: 31/01/2012(UTC)
Posts: 3,819
Mr GL;188743 wrote:
Private Finance are the broker - +44 (0)1743 211 855 - I think that if you have a slightly funky set up then its best to go through a broker... these guys seemed pretty switched on and are a whole of the market broker so not tied to a limited number of providers...

Not sure abut funky, rather a messy set up where my RM / Broker / Account manager / Dedicated contact / Concierge / .......etc, all seem to have a better understanding of my situation than I. My mortgage broker who was very good and I had known and followed for over 25 years decided to retire, which I feel was a bit selfish of him :-)

I would rather just give a broker / RM / specialist my details and let them get on with it ! So thank you very much.

I will given them a call next week,

P.S Did you need to go and meet them and spend a couple of hours telling them everything from your date of birth to the names of your neighbors cats.
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Mr GL
Posted: 02 October 2021 16:20:09(UTC)
#30

Joined: 18/10/2020(UTC)
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Newbie;188747 wrote:
Mr GL;188743 wrote:
Private Finance are the broker - +44 (0)1743 211 855 - I think that if you have a slightly funky set up then its best to go through a broker... these guys seemed pretty switched on and are a whole of the market broker so not tied to a limited number of providers...

Not sure abut funky, rather a messy set up where my RM / Broker / Account manager / Dedicated contact / Concierge / .......etc, all seem to have a better understanding of my situation than I. My mortgage broker who was very good and I had known and followed for over 25 years decided to retire, which I feel was a bit selfish of him :-)

I would rather just give a broker / RM / specialist my details and let them get on with it ! So thank you very much.

I will given them a call next week,

P.S Did you need to go and meet them and spend a couple of hours telling them everything from your date of birth to the names of your neighbors cats.


Not met - but yes - they needed a ridiculous amount of information. Has all been done over the phone and via email.
The first deal they came up with was OK - but not great- but I pushed him a bit and the third one was the best overall in terms of headline rate, all in 'effective' rate (taking account of the fees etc). I initially wanted 250k at 1% so have settled for a little less and because we have gone for a salary multiple this was simpler and therefore high street bank via broker got the deal. If I had gone via the asset backed / share portfolio route then could have got more money but worse rate and much higher fees / costs... I dont need the money but dont want to cash in any investments and at 1.13% effective for 5 years its almost like its free money - which yes at some point I will need to pay back...
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2 users thanked Mr GL for this post.
Newbie on 02/10/2021(UTC), Mat1 on 04/10/2021(UTC)
Mat1
Posted: 04 October 2021 10:23:11(UTC)
#31

Joined: 03/05/2017(UTC)
Posts: 374

Thanks: 331 times
Was thanked: 391 time(s) in 190 post(s)

Mortgage leverage really is great isn't it?

I'm currently trying to get an extra £150k interest only. If I can make that work at a low rate I'll be over the moon.
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Mr GL on 05/10/2021(UTC)
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