Where to go for Buy to Let deal?

Financial_Savvy

Can I please have some help in finding the best Buy To Let deal, on an interest only basis? Do Nationwide do BTL deals?

Do you have to go through a Broker?

Thanks

Tiddler_2

Nationwide don't do BTL mortgages themselves, they offer them through their subsidiaries The Mortgage Works & UCB Homeloans.

However, if you are looking to let out your current home, they may consider allowing you to do it for a period of time if you ask them.

The majority of lenders that deal with BTLs do tend to offer their products through brokers, but a few (Woolwich, Nat West/RBS, C&G for example) may offer them direct to the public.

To give any ideas on the best rates then it's necessary to know:

Mortgage Amount Req'd
Property Value & type.
Rental Income for property (likely or actually achieved)
Your earned income (some lenders have minimum income restrictions)
Is it a purchase or a remortgage?

Financial_Savvy

House price is worth approx £115K - £120K

2 bedroom Q-Type property

Rental income would be between £525 and 550, according to Property Management company. They take 11% + VAT.

Currently no mortgage on the property. Looking to borrow about £75K, it would be a re-mortgage.

My income £22k per year.

Does the number stack up in my favour?

Toughluck

Should be OK high street lender wise as long as you have no adverse credit. Your income seems to qwualify the minimum some lenders stipulate. Is the property ex local and in pre emption?

Financial_Savvy

Not sure what you mean about ex location and in pre emption.

What products would you suggest?

Toughluck

Sorry, I meant is the property an "ex council house"?

Not going to recommend a product to you at this stage as the property tyoe does matter.

Financial_Savvy

Nope, it's not an ex council house.

I have a mortgage on the next house with Nationwide, at 6.49. Could I borrow more on that mortgage and then have no mortgage on the rental property?

mewbie_2

er.. have we gone back to 2004? Are you serious about BTL?

Cost of property - 110,000?
Rent 525 (says the shark) less 11% = c. 475.

Cost of interest 7% on 110,000 = 7,700 per year
Max income - no voids, repairs = 4,750 per year.

It doesn't seem to make financial sense to me, perhaps I am missing something.

Toughluck

Again not sure if the yield question raises it's ugly head here.

i take it you need this money regadrless of whether or not it is best for you in the long run?

As Tidder said, try the Mortgage Works as you have got something with Nationwide anyway. Alternatively, C&G, chelsea, West brom just to name a few.

Financial_Savvy

So is BTL a bad idea, even if I am taking a 10 year view?

Financial_Savvy

Some of the arrangement fees have to be a joke? Up to 2.95%??