mortgage stress tests

Rob & Rob are back with the latest round of listener questions, and strap in because this week we’ve got some good ones! 

• (0:43) Jackie bought an off-plan property with an up-front 50% deposit. She was recently due to complete, but the developer isn’t allowing the surveyor access to the property, so her lender won’t release the mortgage funds. Jackie’s hoping Rob & Rob can shed some light on what she can do to ensure she completes and gains access to her property. 
• (4:42) Tom’s is looking to remortgage and he’s hoping Rob & Rob can explain what ICR (interest cover ratio) actually is? 

Links mentioned 

• Course: Everything you need to win big at off-plan property 

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This week on Ask Rob & Rob, the guys are giving advice on mortgage stress tests and discussing if it’s beneficial to have a commercial valuation on a HMO property.

Our first caller this week is Tom who has a question on mortgage stress tests. 

He’s got two mortgaged properties already and he’s done a pretty good job on running the numbers to try and work out his stress test figures.

But now he’s wanting to release equity from the two properties and thinks this might now affect him meeting the stress test criteria. 

So what does Rob B suggest?

The second question this week comes in from Matt. 

Matt’s question is around HMO finance, after looking at buying a property with his partner. 

They’ve heard somewhere that they can get more of their money back out of the property, post renovation, if they have a commercial valuation done. 

Is this something that they should be having done on a HMO?

Tune in to find out. 

Do you have a buy to let or property investment related question for Rob & Rob? You could feature on the next episode by giving us a call on 013 808 00035 and leaving a message with your name and question (normal UK call rates apply). 

Or if you prefer, click here to leave a recording via your computer instead.

The next question on Ask Rob & Rob could be yours. 

Have you joined us over on the Property Hub Forum yet? Our online community is friendly, informative, and the members are waiting to welcome you with open arms. So get yourself over and introduce yourself.

See omnystudio.com/listener for privacy information.

Welcome to another jam-packed Ask Rob & Rob - that time of the week where you fire your property investment questions at us and we fire our opinions straight back at you.

The first question this week is from Sean. He’s been listening to The Property Podcast for over a year (thanks Sean!) and has been loving the content so far.

Sean is 28 and in June 2015 he purchased a 2-bedroom apartment in one of the most prestigious buildings in Manchester city centre, complete with a balcony and parking.

Fast forward a few years and Sean has purchased another property which he wants to live in.

He has a bit of a dilemma: he wants to keep his old Manchester city centre property as a buy to let but isn’t sure. Here’s the rundown:

• Value: £370,000
• Outstanding mortgage: £280,000
• 35 year repayment mortgage quote approx. £1,000 pcm
• Service charge: £400 pcm
• Rental forecast: £1,400-£1,500 pcm

Sean believes that capital growth in Manchester has a fair distance to go and would like to keep hold of the apartment but isn’t convinced this is the right thing to do. Would an interest only mortgage bring the costs down? Should he rent it out and subsidise the losses from his own pocket? Is it worth him keeping the apartment for 10-20 years or should he cut his losses and sell up?

Listen as The Robs crunch some numbers and give Sean some factual advice which may swing his decision.

Next up we have Jamie who’s in the process of purchasing a buy to let investment flat with an EPC rating of F.

The energy efficiency changes came into force back in April and the current owner has clearly granted a tenancy knowing his property doesn’t comply.

Jamie rightly wants to know if he’s likely to be held liable for this error when he purchases the investment property and the lease is changed into his name.

Listen to find out what Rob & Rob would do in this situation - and why Rob D has had to dig down into the legislation to help Jamie out.

Hit the play button and enjoy this week’s Ask Rob & Rob.

Do you have a buy to let or property investment related question for Rob & Rob? You could feature on the next episode by giving us a call on 013 808 00035 and leaving a message with your name and question (normal UK call rates apply).

Or if you prefer, click here to leave a recording via your computer instead.

The next question on Ask Rob & Rob could be yours.

Have you joined us over in The Property Hub Forum yet? Our online community is friendly, informative, and the members are waiting to welcome you with open arms. So get yourself over and introduce yourself.

See omnystudio.com/listener for privacy information.