Buy to let mortgage

[redsloe]

BM, Birmingham Midshires are good but can only do 3 mortgages with them or something. I did one with The mortgage works too, somewhere along the line. BM I think they were one this morning. I didn't look too closely as I've nothing in mind.....yet.

 

[little_p]

As I see it, the options are -
(1) take out a residential mortgage on the new house
This seems the easiest option to me, provided that YOU and the property meet their lending criteria. Reason is that you are buying a second home, as long as you show that you have the income to maintain two homes, the house is currently habitable, generally they are happy.
(2) (re)mortgage your existing property.
The lender will ask you questions as to why you are mortgaging a property that currently is mortgage free. You can lie and say it is for home improvements, if the LTV isn't high they might not send a valuer around and they will be none the wiser as to what the money will actually be used for. As long as they are receiving their repayments generally they will be happy.
Although if you get caught out and they decline your application this will reflect on your credit report. At worst they will report you for fraud. If you take out a no-fixed period mortgage, once the rental property is bought, renovated and rented you can quit the residential mortgage and take a BTL mortgage on the rental property.
(3) take a BTL mortgage
Expect a hefty amount of criteria to get one (a minimum annual income of £25k, the rent to be 125% + of the mortgage are two of the usual criteria). If it is not currently in a position to be rented or requires work, expect LOTS of questions and maybe a portion of the mortgage held back until completed.
(4) take a specialist 'renovation mortgage'

With options (1) and (2) you can have a play about on mortgage comparison websites to see who will lend you and on what terms and if you confident that you know what your doing, able to apply directly to the lender.
Option (3) if you start to really understand the mortgage market you can go it alone and a get a BTL mortgage direct with a lender, otherwise I would recommend using a broker. Option (4) you will almost certainly need a broker.

 

[ISCO]

Do you use them ? Ok ?

In my off farm work I see a lot who do and very satisfied with them. They do a lot to limited companies at the moment.

 

[Robw54]

You want some kind of bridge or refub loan - you won't get a straight B2L if it unlettable. If you stand to make 40k on capital value I wouldn't be worrying about a few K extra in finance.

Once its done put it on a standard B2L, release your added value - at that LTV you would be be struggling to pay close to 2%.

And don't forget to cost the 3% stamp duty if its your second property.

 

[Y Fan Wen]

I though this article would be worth a read;
politics.co.uk/comment-analysis/2020/10/21/the-bank-of-mum-and-dad-is-a-ponzi-scheme-and-it-s-time-for

Makes you think!

 

[Tubbylew]

I though this article would be worth a read;
politics.co.uk/comment-analysis/2020/10/21/the-bank-of-mum-and-dad-is-a-ponzi-scheme-and-it-s-time-for

Makes you think!

Jesus it's a sad day when you can't help out you children, begs the question what is the point?.....

 

[sensiblefarmer]

Not easy money BTL. But do your figures, Ask a mortgage broker for quotes, offer a good deposit 40% if possible, maybe go for interest repayment only(but try pay of some capital per year up to the limit allowed limit.
Perhaps mortgage your house to buy (dependant on interest rates).
Keep vendor informed of your progress and try to do deal direct without an agent (especially those without a chin) because the B*****d's will offer it on the open market and want a cut. Choose a reputable conveyancer or decent solicitor after obtaining quotes( your vendor could also use the same firm but different solicitor).
Give it a go!

 

[farmerm]

You should have no problems just taking a normal mortgage out against your own house. Cheaper than a btl and you don’t have to pretend your going to move. It is a perfectly acceptable practice to release equity.

So hypothetically speaking if I owned land I could got to the AMC and release equity in land and use that money to purchase a BTL at a better rate than a BTL rate?