Remortgaging buy to let property 1.5 times rent rule on amount loaned

T

Trivia

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We are coming to the end of term of our buy to let mortgage which is in pepper. We are looking to remortgage at less than 50% value of our buy to let. We have no other loans. PP is paid. I spoke to PTSB and they have a policy of rent needing to be 1.5 times of the monthly mortgage repayment. This means we can only borrow 80k rather than 120k. Is the policy in other banks? My husband is 59. We are planning on taking out a ten year mortgage with the view of paying it off in full with retirement lump sum. Any advice is appreciated.
 
Hi,

We are looking to switch mortgages from interest only to variable. Pepper have refused extend our mortgage term. Is it very difficult to get a variable mortgage to switch from interest only.

We have been turned down by a few banks as although we have saving we don’t a savings history which we are now reversing. We are financially sound,good income, large pension, home paid off, looking for less than 50% mortgage value of buy to let. Any advice?
 
Difficult to comment without some hard figures and other details of your overall financial circumstances and about the exiting buy to let mortgage.
Have you considered going via a mortgage broker?
Trivia said:
We are looking to switch mortgages from interest only to variable.
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Do you mean from interest only to variable annuity/repayment where you'll be making capital plus interest payments?
Trivia said:
Pepper have refused extend our mortgage term.
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Why were you trying to extend the term and what has this got to do with the switch from interest only to variable (annuity)?

Edit: looks like today's post was merged with an existing thread which contains some of the context and info that I was referring to above.
 
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Why don't you sell the property and repay the mortgage?

Then max your pension contributions.

Sounds better than struggling with a mortgage.
 
For difficult cases like this, you should contact a mortgage broker who will present your case in the best possible light.

Some of the smaller lenders seem more flexible. ICS Moco

Are you in a credit union? They might help. Unlikely, but worth asking.
 
They have an interest-only mortgage with Pepper and the term is up. So Pepper presumably want the mortgage cleared.

Brendan
 
Brendan Burgess said:
Why don't you sell the property and repay the mortgage?

Then max your pension contributions.

Sounds better than struggling with a mortgage.
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I agree with this but at the very least you need to understand the yield (after all expenses and taxes etc.) that you're achieving and whether or not it's a sound investment and the most appropriate one for your money. It would want to be very lucrative to beat investing in a very tax efficient way through a pension.
 
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