Got a BTL Agreement in principle mortgage, can I get a loan now?

luzico

Hi there,

I managed to get an agreement in principle on a BTL property. Here are some details:
property value: £150k, 25%deposit, borrowing £112500 over 25 years.

The question is: I haven't got the deposit, so I was willing to get a secured loan on the mortgaged property I live.

Based on your experiences, would that work?

Regards

brit1234

More dodgy buy to let scams :mad:


If you haven't got the deposit you can't afford to buy the property

luzico

Sorry, but what do you mean by 'dodgy buy to let scam'?

Could you please explain?

Regards.

keith1950

Hi, the mortgage provider will do another credit file check just before they hand over the money so it really depends on how they feel about it, they will probably then reduce their offer.

dimbo61

I hope you really know what you are doing !
Taking on £150,000 worth of debt at a BTL rate ( what 6% ) to buy a property !
Whats that going to cost you each month in repayments even on interest only and then try to rent out the property or get it ready to rent out !
Gas safety checks, electric safety checks, Landlords insurance , costs of getting a tenant and doing back ground checks, legal fees , refurbishment costs.
periods when the property is empty
Damage done by tenants!
Better off to repay some of the debt you have on your own home and save a 25% deposit for a BTL

brit1234

luzico wrote: »

Sorry, but what do you mean by 'dodgy buy to let scam'?

Could you please explain?

Regards.

More mortgage fraud pushing house prices higher and removing starter homes from ftbs.

Caz3121

how much equity do you have in the property you live in?

luzico

probably 70-80k equity in the property i live in.

animal8

We live in a capitalist society, people are allowed to invest in property.
Dont assume it is a scam. You can just go to an estate agent to find a property to buy. The fact that most people are negative on property indicates that this is a great time to invest in it.

Now, regarding the mortgage... BTL lenders are very careful and will ask you to prove where your deposit has come from. You may need to provide bank statements and explain any lump sump payments you have received. They might have issue with you borrowing your deposit. You should ask your mortgage broker it this will be allowed.

Also, you should consider carefully if it is a good idea to put your home at risk like this.

Good Luck!

Wutang_2

brit1234 wrote: »

More dodgy buy to let scams :mad:


If you haven't got the deposit you can't afford to buy the property

Mr Angry, what am I missing here?

If they have 80k equity and want a secure loan to fund the deposit for a BTL then whats the scam?