credit crunch and re-mortgages

[neilm]

With Mortgage Express pulling out does anybody know if it is possible to use a bridge purchase and immediate re-mortgage to buy a bmv property at the moment.

[Colincbayley]

With Mortgage Express pulling out does anybody know if it is possible to use a bridge purchase and immediate re-mortgage to buy a bmv property at the moment.

Trust me, I have been looking and looking, and the advice I have received from every broker I have spoken to is the MX were the LAST lender still allowing same day remortgages.

As such, unless someone knows of a lender, We're stuffed on BMV purchases!!

[Colincbayley]

Another option:

There is another option to the old MX deals. If you complete a standard Buy-2-let mortgage with BMS ( 5yr fixed at 6.79% ) then you can, after the first month have the property re-surveyed and apply for a further advance.

The interest rate is high, but the rental coverage is only 100%.
You will still need a min 15% deposit, but this would only be for the first month or so.

Not a great option, but some deals will still fit.

[Colincbayley]

I had an email last weekend from a so called mortgage broker, offering an alternative to NMD deals.

He sent my an email will all the details.

The basics of it was mortgage fraud! He had a solicitor willing to tell the lender that the OMV survey price was the purchase price.
Also wanted to charge 10% of the valuation for his fee, buyer and selling had to use the same solicitor ( obvious reasons ) and you would have to pay SDLT on the valuation price not the purchase.

He swore blind it was all legal!!!!! :eek:

[Colincbayley]

Agreed. I think I know who you are referring do. Keeping it in house with 1 set of solicitors does ring alarm bells as it could easily be seen as not being arms length. In fact, the one provider I spoke to told me in this setup an agreement is signed by the seller waiving the rights for the transaction to be transacted for both parties by the same firm.

The method I have is not out yet as I have a barrister as well as some tax guys looking into the structure, but I expect to get an answer any day now.

Let us know when you've got it! Although I would want full details of the 'structure' before doing anything as there are a lot of dodgy deals going on at present and a lot of brokers promising the earth without giving the deails. I'm not suggesting you are not one of them.