Which one to get first: loan or BTL mortgage?

luzico

H there,

I'm willing to buy a BTL property, considering I could get a 10% deposit BTL mortgage. As I don't have the 10%, I was thinking about getting a loan. However, the question is:
Shall I get the loan first and then apply for the mortgage or get the mortgage first and then the loan. Which way is more likely for me to get the 2, considering they do all the checks and everything.

Regards,

Luci

Leon_W

You'd be lucky to get a 90% residential mortgage let alone a 90% BTL !

Seriously. They don't exist. Think more like 70-75% LTV and even then, if you're a first time buyer, you're probably on a hiding to nothing.

Regards

luzico

I already have a mortgage on my property. This one would be an investment.
All right! Let's suppose the better I could get is a 75% BTL Mortgage. Would I apply for the mortgage first and then the loan or the opposite?

Thanks in advance.

herbiesjp

If you go to the bank for a loan, and tell them you want it for a BTL, let me know what answer they give you

Leon_W

Most BTL lenders will ask for proof of deposit and you'll be asked where it has come from.

Any application with a deposit coming from a loan will be declined.

It used to be the case that you could remortgage your own home to raise a deposit for a BTL but lenders are routinely refusing remortgage applications for this purpose aswell.

Don't get me wrong but lenders are looking for reasons NOT to lend and they will see through your plan whether you apply for a loan, before, during or after any mortgage application. Unless you have a 25-30% deposit in hard cash in a bank account it isn't going to happen.

Regards

SouthCoast

Lenders are not looking to expand their BTL mortgage portfolios!