Hi Everyone,

I currently own two properties and I am just about to complete on my third. My first property's fixed rate interest is due to expire in March 09. Originally I went with a specialist lender as I had a few defaults on my credit file which where settled but yet to expire. My credit file is now blemish free, all payments are made on time (and have been for over 5 years), however my actual credit score is low due to the amount of searches on my file (not for credit applications).

I wish to change my mortgage to a buy-to-let but I am quite worried about the rates. The property has always been let out and had a good amount of equity in it until this year. I took out a further advance of 30,000 to purchase my new proprty. The flat was originally bought for 99,400 (interest only), the mortgage is now 125,000 and its presant value is 140,000.

My tenant is due to move out at the end of January and I plan to move in when it becomes vacant. I am currently on a working holiday in Canada. It is not feasable for me to move into my other properties as both of them have a surplus after all expenses are paid. The studio flat no longer makes a profit due to the further advance (I supplement by 70).

I had a consistant work history until I left the country (June 08) and I hope to find work when I get back. I am a professional and my income is good (already looking at new roles).

Sorry for my long winded email, I just wanted to give a clear picture.

Can anyone help with advance/best options!

Thanks

Captain

Hi,

I posted the above post a few weeks ago but have not had any response. I would really appreciate your help. I am currently in Canada and I am starting to feel really pressured with the whole situation.

Basically, is it work me changing my mortgage to a buy-to-let. I have been looking at the rates and they are sky high. The rental income would not make the repayments! Also with house prices slipping every day I am worried that I am moving in to negative equity. I have some savings put by and I am thinking I should sink it in to the mortgage to lower it.

Is it best if I speak to broker now to see what deal he can get me for a remortgage as a residential property. The rate expires the begining of March. I am not back in the country until February.

Please, Please help!!!!!

Hi,

Who is the mortgage with for the property you wish to re-mortgage, and is it currently a buy to let or residential mortgage?

Also, you've stated you will move into it around january time, how long do you think it will it be before you get employment in this country?

Michael

Hi Michael,

Thank you for responding.

The property is currently with Mortgage Express. It was a 3 year fixed deal 5.34% It is a residential mortgage.

I am looking for a job now as we speak. I can line up long term agency work immediately whilst I am looking for a permanent job (will be applying for permanent position from here but I have to consider interview deadlines).

took money out of it, mortgage now 125,000 recently valued at 135,000 from an estate agent. was valued lat last year by mortgage company at 140,000

Thank you

I think your first option would be the approach mortgage express. I would almost certainly say inform them that you live at the property if you are going to move in. There is no chance of getting a buy to let mortgage as you simply don't have the equity. One problem you might have is that i don't believe mortgage express are offering residential deals currently, but they're still worth trying.

Another option you have is to look to remortgage the property to a new lender. I would state the property's valuation as 140k as estate agents to tend to underprice the property value, whereas someone valueing the property for a remortgage is more inclined to agree with the 140k, that's what ive found anyway. If the property is any lower than that i doubt you will be able to move lenders.

Your biggest problem is your work and thus income. Lenders like nationwide and the bank of scotland will look at your mortgage application if you have been employment for just a day though, and coincidently are 2 of the most competitive lenders at the moment. I think the best thing for you to do is find employment, and then apply for a residential re-mortgage. It would be well worth your while speaking to a broker when you get back in the UK.

Michael

Thank you for your advice. I have a lot to think about.