Yes you should have done it differently however may have been reasons for doing so.

Still not too late to correct structure so you can go forward.

Carlito

Sorry i think you are missing the point of correct structure.

The LOC secured against your own PPOR will be used to draw down a 20% deposit and acquisition costs on your new IP.

Separately a standalone loan of 80% of the purchase price will be taken on the IP security.

Hope this makes sense now.

Carlito

You wouldn't deduct the loan owing on the Commercial property if the PPOR is not being used as security.

Debt servicing maybe an issue from what you have written so Lodoc option maybe a consideration depending on your current position.

Must admit i cant really see the problem but admitedly we are not armed with all of the facts.

Dozens of clients all in a similar boat and not had issues with them going forward.

Hi D2

Congratulations on making the first move in the property world.

I am not sure there is any minimum requirement for payment of a deposit it is merely what the vendor will accept.

Now with regards to the payment of a valuation fee i think i would hold off as the lender will want to do one anyway so this could be $450 well saved.

Your Mortgage Broker could commission a valuation for you which wont cost you anything and will be acceptable to the Bank and this will kill 2 birds with the same stone. 

Also doing the valuation now will show how keen you are on and how you can move swiftly.

Secondly dont mind the Westpac Rocket product but depending on the loan amount believe you could do better.

Whichever way you go good luck and keep us posted.

We have a couple of deals going through the NAB and havent struck any problems to date.

Currently not aware of any conventional lender (not the Dragon has pulled in its horns) who will take a 2nd mortgage.

Also the Deed of Priority will be State based as certainly not a requirement here in sunny Qld.

Bear in mind Bank West credit policy is much the same and very hard to get a deal to fly unless credit score is perfect.

Hi Mark

At least the exist fees dont sound to bad with ING.

Personally the way i like to structure a loan for my clients is sit an investment line of credit behind their PPOR loan (which depending on a couple of things is usually Interest only with 100% offset account) and use these facility to draw down the deposits for the IP's.

Then take out a separate interest only loan on the individual standalone investment securities.

Direct all of your income into the PPOR offset account and repeast for each property.

Couple of ways of fine tuning the structure when it comes to sub accounts but all in all clean and easy to work with.

Security and the ability for an investor to keep going forward are the main aims.

Come back to us if want a hand.

Yes future capital growth / equity is to the benefit of the purchased and not the Vendor (of course unless the Contract states otherwise and I have done the odd shared equity deal under vendor finance).

The incoming Bank will normally only lend against the initial purchase contract irrespective of the value unless of course where the Contract if over 12 months old and then you may find the off lender advance against valuation rather than purchase price. 

Yes us Poms must stick together.

Which part of the Uk are you based in David ?
 
I am southern boy myself although do take on clients who were born North of the Watford Gap lol

Was only over there Oct/ Nov and a little of Dec 09 however managed to miss the snow.

Realistically you wont get LMI cover until you are a permanent residence so will be limited to a 80% lend or below but would need a bit more information to advise you further.

Hear from you soon.