Buy to let on inherited house

chancer1967

A colleague has inherited a house jointly with her sister. The sister wants to sell and my colleague wants to keep it and rent it out for a while, with the hope the house prices five years from now should be improving a little.

She wants to borrow 60% of the house value (50% to pay the sister and 10% for some improvements and a few treats).

She is not sure whether she wants a fixed or variable rate, but she does want to be able to make overpayments or one-off repayments.

What would people recommend? Is anyone aware of banks offering BTL mortgages that they aren't advertising?


Thanks

DawnW

I suggest your colleague does what I did - consult a fees free, whole of market broker, preferably one recommended by someone she knows. She or he will give indications about what they might get salary/ LTV wise, as well as what deals are around. There are some good deals around currently which seem to bypass brokers, but if she spoke to one first, she would have something sensible as a baseline to compare. If I were your colleague though, and didn't want the house to actually live in, I would agree with my sis and sell it! Might take a while at the moment, but renting out is a pain IMHO (and I, reluctantly, do it).

koexelek

At 60% loan to value, there should not be too much of a problem, as long as the rent easily covers the mortgage interest

herbiesjp

What is the property value, so we can see what the 60% equates to.

Also, what kind of rental income do you think you could get on the property?

payless

Whilst some lenders do have "direct deals" on some residential ranges - its more usual for brokers to have greater access/ better priced B2L