is borrowing for BTL easier?

theGrinch

I have heard and recently read in the press, that some mortgage lenders are being less restrictive in their BTL terms, in light of the recent slowdown in lending.

I was wondering how true this was. How much more easy is it these days to start a BTL portfolio of one or more properties with no money or a gifted deposit or £25k in savings.

Regards

payless

lenders usually ask 15-25% deposit ( although one now reduced to 13%)

Mostly lenders are looking for rental yield of around average 7.5% ( same across portfolio) often depends on product taken. ( again 1 now looking at only 6%)

Most ( but not all) also expect to see applicant has other earnings

dougk_2

Bristol and West appears to be one of the lenders that makes things quite easy but you need 25% deposit (I think). They don't ask too many questions and you need to make 130% of the mortgage intrest in rent.

At their fixed rate of 5.59% that means you need to clear about 575 per month for a 100k Mortgage.

payless

They will lend upto 85%, however less restrictive criteria at 75%

theGrinch

thanks for the replies. interesting.

I think the NR are offering 87% LTV, but I understand that you would be paying a premium rate for the extra 2% LTV; probably not worth it.