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  • Mortgages & Finance

    Risky to apply for resi & BTL mortgage?

    Hi, Please can somebody help shine some light on the following predicament.

    I am in the process of obtaining a property to live in via a residential mortgage. My mortgage has been offered and accepted and is with the solicitors. i have been advised there is still 6-8 weeks left before exchange of contracts.

    Meanwhile, i have stumbled across a repo property that really ticks all the boxes.

    I want to get a B2L mortgage on it. My problem is if the Halifax Underwriters see the searches on my credit file for the B2L Mortgage Provider and it changes my affordability and effect the offer they have made by requiring a larger deposit or whatever.

    i would wait but as its a a Bank Repo i could do with acting fast.

    A Financial Advisor has told me regarding the residential property, that Halifax won't do any more searches unless the mortgage offer expires (end of August) or the loan value changes, He was employed by the Estate Agents selling the house so i wanted a more non-bias opinion.

    Thanks in advance guys, i hope someone has done similar!

    Cheers...

    Michael.

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    Hi

    Firstly, do you have enough money for the deposit for both properties. BTL need min 25% of purchase price (not property value).

    It is highly likely Halifax will not do additional credit search (besides one additional search on a BTL should not matter). However if anything has changed regarding your affordability you are supposed to tell them and could be viewed as mortgage fraud if not.

    However the mortgage broker should be able to tell you if a BTL mortgage is affordable together with the residential.

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    I think the mortgage advisor is right. Go for it!

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    it's affordable i have just sold one also we have enough for deposits, fees and stamp duties... just about....

    Arguably, me investing into a Buy 2 Let property would improve my affordability when tenanted but i have a feeling they would consider it a cost and/or a risk.


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    Your Mortgage Adviser is not accurate that Halifax wont do any further searches - they often do at any random point along the transaction.
    Ive seen lenders do checks before releasing the funds, this is often to ensure that the applicant has not taken out any loans/credit cards to fund deposit/fees/stamp duty etc..

    Though that would not be a worry for me.
    A BTL Property purchase should not be detrimental to the ongoing residential application - as long as it is self financing and you have enough savings to fund both purchases from deposit to misc purchase costs.

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    The above post is not financial advice, its often me rambling - passing time on a coffee break.
    If you are looking for the Best BTL Mortgage? Call the Specialist Team at Bespoke Finance.


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