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Bhoy

End of BTL mortgages?

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Long term lurker - essentially (and don't hate me!) I've moved back with the parents and possibly looking to buy. I live in a town in North-Oxfordshire, which I can't stand and so I'm moving to Scotland (family ties, love of the SPFL, etc). I fully expect a crash, it's just I don't know when and I've been waiting since 2009 and a bid fed up, so went to see how much I can borrow (hey, this doesn't mean I'll commit to purchase!)

So I went to get a mortgage (big deposit, good job - no issue). The first thing both Halifax and Santander told me when I said I was buying in Scotland but living in England (I intend to move slowly, just want to get a small apartment purchased first, then source a new job and move North) was that they don't offer BTL mortgages anymore......... bit strange as I didn't want one (I think they assumed I was in the BTL crowd). They said pretty much no one does them anymore.

SO in regards to an AIP; I've had AIPs before. Santander said they don't offer them in branch anymore and Halifax wouldn't even entertain the idea of myself buying in Scotland, even with large LTV and wouldn't even see me for a consultation. I asked twice.

I got the impression they are genuinely wary of lending now. Additionally, my hometown has gone ballistic - sinkhole estates are even expensive; £250,000 for a 3 bed semi in an area I think I would cry myself to sleep every-night if I had to live in.

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Sounds encouraging! :)

Quote

Additionally, my hometown has gone ballistic - sinkhole estates are even expensive; £250,000 for a 3 bed semi in an area I think I would cry myself to sleep every-night if I had to live in.

3 bedroomed townhouses on the housing estate I grew up on (not quite a sinkhole) are about £170-180k now. I use this area as a barometer of the housing market in my city. They were about £45k 20 years ago. :blink:

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17 hours ago, Bhoy said:

Long term lurker - essentially (and don't hate me!) I've moved back with the parents and possibly looking to buy. I live in a town in North-Oxfordshire, which I can't stand and so I'm moving to Scotland (family ties, love of the SPFL, etc). I fully expect a crash, it's just I don't know when and I've been waiting since 2009 and a bid fed up, so went to see how much I can borrow (hey, this doesn't mean I'll commit to purchase!)

So I went to get a mortgage (big deposit, good job - no issue). The first thing both Halifax and Santander told me when I said I was buying in Scotland but living in England (I intend to move slowly, just want to get a small apartment purchased first, then source a new job and move North) was that they don't offer BTL mortgages anymore......... bit strange as I didn't want one (I think they assumed I was in the BTL crowd). They said pretty much no one does them anymore.

SO in regards to an AIP; I've had AIPs before. Santander said they don't offer them in branch anymore and Halifax wouldn't even entertain the idea of myself buying in Scotland, even with large LTV and wouldn't even see me for a consultation. I asked twice.

I got the impression they are genuinely wary of lending now. Additionally, my hometown has gone ballistic - sinkhole estates are even expensive; £250,000 for a 3 bed semi in an area I think I would cry myself to sleep every-night if I had to live in.

Sounds like they are shying away from BTL in a big way and because of your address they think you are intending to BTL with an OO mortgage. While it may seem slightly odd it makes perfect sense in a world where banks actually give a damn what they are lending for and to whom.

You could rent up there to give you an address and then buy once you've moved?

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That is an option - to be honest, the way property prices are going, my logic is that if it takes me a few months to find a good job, I then have to be in it 3 months to get an AIP, then find somewhere........ looking just to save time.

I like the idea of buying, maybe travelling and letting it out for a year then coming back (not in an evil BTL landlord sort of way, just in case I go and come back and my savings have been eroded to nothing and property is even more stupidly priced than now).

 

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Yeah, mortgages are changing - even before brexit we were looking to leave London late last year, and found getting a mortgage on our new house hard as my job was in London. In the end I got a comfort letter from work stating that I could do 2 days a week from home and that they were aware I was relocating. Had to go with a second choice lender to get this, the people we wanted to go with (better rates) wouldn't except anything other than 100% remote work or a local job. In the end I got a job here on pretty much the same money, but it took me longer than planned, so factor that in. We were pushed for time for a few reasons, so couldn't just wait to get a job first. 

Likely talk to a broker or direct to a mortgage provider and explain your plans, switching from OO or BTL might incur costs. Is there really a rush to buy in the area you are looking at? 

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If you don't own your own property its hard to get a BTL mortgage as a common trick is to say you are buying a BTL using the income from the property to pay the mortgage, then after 6 months kick out your poor tenants and a take it up residence as OO.

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On 26/10/2016 at 0:22 PM, Bhoy said:

That is an option - to be honest, the way property prices are going, my logic is that if it takes me a few months to find a good job, I then have to be in it 3 months to get an AIP, then find somewhere........ looking just to save time.

I like the idea of buying, maybe travelling and letting it out for a year then coming back (not in an evil BTL landlord sort of way, just in case I go and come back and my savings have been eroded to nothing and property is even more stupidly priced than now).

 

So the one thing you immediately must do before going off traveling is buy a house?

 

Eh?

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On 10/26/2016 at 0:22 PM, Bhoy said:

That is an option - to be honest, the way property prices are going, my logic is that if it takes me a few months to find a good job, I then have to be in it 3 months to get an AIP, then find somewhere........ looking just to save time.

I like the idea of buying, maybe travelling and letting it out for a year then coming back (not in an evil BTL landlord sort of way, just in case I go and come back and my savings have been eroded to nothing and property is even more stupidly priced than now).

 

I guess your tenants will be happy to know they will be kicked out if you 'fancy' coming back. Sorry - you have a LL mentality. 

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On 01/11/2016 at 5:14 PM, Si1 said:

So the one thing you immediately must do before going off traveling is buy a house?

 

Eh?

The one thing you must do before being born is, buy a house! In fact, think that you might have grandchildren? Buy them a house now!

Milton Freeman had a point, don't you think, when he pointed out the irrationality of parents in saving for their children.

People won't get it until HPI spends years at a crawl (or hopefully negative!) and the cost of holding these assets becomes a noticeable burden.

Edited by renting til I die

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On 03/11/2016 at 11:05 AM, renting til I die said:

 

Milton Freeman had a point, don't you think, when he pointed out the irrationality of parents in saving for their children.

What did Friedman say?

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On 01/11/2016 at 5:14 PM, Si1 said:

So the one thing you immediately must do before going off traveling is buy a house?

 

Eh?

I want something to come back to, other than all my savings being eroded away by inflation and houses prices being 20% more than when I left.

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On 10/11/2016 at 1:50 PM, Bhoy said:

I want something to come back to, other than all my savings being eroded away by inflation and houses prices being 20% more than when I left.

What?

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