Q: Myself and husband are sole owners of my company. Me 75% share holder. I take the minimum dividends to keep personal tax low. I have a property which I  am selling at £800,000 and I wish to buy another at £1,1950,00. I have a mortgage at £315,000.

The company is due to have gross turnover this year of £230,000. With profit of £120,000. I started the company 2.5 yrs ago and prior to this was on a salary of £92,500. My company is growing and since i started it it has doubled in profit each year. I antistpate it sticking around this years figures unless i start expanding.

However….As I take dividends my salary now looks minimal therefore how do I go about finding the £400,000 I need to purchase the property I know I can well afford the repayments on. .??? (more…)

Monday 15 August 2011
Q: Hi, I have a property in London with about 25% equity (£110K). I want to keep it and move to Yorkshire. I need a mortgage on interest only (as I am in sales and 6 monthly bonuses) for £666K on property valued at £895K but purchase price agreed is £835K with a further sellers incentive of £35K, which I will use to pay stamp duty i.e need an interest only mortgage on purchase price of £835k, and have just over 20% deposit. I have ISA’s and pension plans to support the case for interest only. Will this be feasible and do you think you can help me?

A: It may be possible to achieve this depending on your circumstances and those of the property. Generically a maximum of 75% is available from mainstream lenders on an interest only basis, however 80% may be achieveable if you are suitable for a private bank or if the purchase incentive can be taken into account. I have emailed you separately and please feel free to contact me in confidence to discuss your circumstances further.

Q: Is it possible to find a mortgage product which includes rental income?

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Q: We are currently half way through a fixed 5 year Vendor Gifted Deposit mortagage from the Halifax. Our House buy went through at 77,000 however are mortgage was for 69,000 as 10% was recognised as our deposit by the bank. After the fixed 5 years at 7.45% interest rate, the rate drops to base rate at the time (around 4% I assume). Is there any way of switching mortgages earlier than the 5 years?

I want to make the most of the low interest rate now if possible?

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Q: I have a 2 bed lower ground floor flat in SW7 (South Kensington). Value approx £700,000. Outstanding mortgage approx £540,000. Current interest rate 5.0%. I wanted to remortgage if there is any better rate. I would like to borrow £570,000. I have a clean credit history. I am self employed thus a bit problematic in proving my income. Is there any solutions?

A: f you need to borrow £570,000 on the rental property, it wouldn’t be possible because the amount is more than 80% of the property’s value. It’s possible to borrow £560,000 which is exactly 80% of the value, from a small handful of mortgage lenders. Most lenders will only consider a buy to let mortgage up to a maximum of 75% of the property value. In your case, that is only £525,000 which is less than you already owe your current lender. There is a variable rate deal at 4.20% to a maximum of 75% of the value, but there is a fee of 2.5% of the loan, so if the objective was only to save the cost of carrying the debt, then you’re probably better off keeping the debt at 5% and avoiding this large fee.