BTL Mortgages, Rates!

GameOver_2

Hi

As you know, im a property newbie, so if you guys can give me some advice here, ide appreciate it.

Im looking for a BTL mortgage, where i can get it being under 25 years of age, rate 5% or under, fixed for 2-5 years, no overhang/MIG/ERP.

Thanks

Matt :beer:

herbiesjp

What is the purchase price? and do you have the 15% deposit? and what is the expected rental income on the property?

GameOver_2

Hi

Purchase price is 150,000, but were getting 20% off, which covers the 15% deposit, getting a bridging loan for the 15% initially, its not me buying it, its a friend, shes buying it for me, i will rent it from her until i can buy it from her.

The rent will cover the mortgage (i will make sure lol), she needs a rate under 5%. Fixed.

I have a poor credit rating, thats why i cant buy it initially.......otherwise ide buy it on a BTL to let to my partner!

Matt

herbiesjp

Is this a new property? So is this a builders deposit being offered?

I have no doubt you will make sure the rent will cover the mortgage, however the mortgage companies will want to know from the outset what the expected rental income is so that you fit their criteria.

All lenders have rental calculations, so if the rent is lower than what is needed, it could mean the lender offering a lower mortgage amount and then that may cause you problems.

GameOver_2

Yes, its a new-build, thats why were getting 20% off.

Its ok, i will get a valuer to do the rental assessment ;o)

Do BTL mortgage lenders and bridging companys take credit file into account?

Any advice?

Matt