buy to Let

MATTHEW124

Does any one know where or if I could get a 95% or 90% LTV Buy to Let mortgage

Conrad

C'mon Mat! Where have you been!

I make this comment in good humour - don't get all spikey on me now.

You must be aware billions have been lost on bad lending and that several big lenders have gone pop or been taken over by various Governments around the globe?

You might just about get a 90% mortgage for residential purposes. Note a lot of honest hard working people end up letting out what was a residential purchase. Cambridge academics for example that are suddenly needed to work overseas. A 90% mortgage will be expensive.

For those that do go onto let a resi property, it'simportant the insurance reflects the actual risk if it's a freehold house.

MATTHEW124

I know, i just thought there may be some way or other either by paying a large arrangement fee or high interest rate to grease the wheels!

MATTHEW124

especially as Lloyds are currently offering a 95% LTV for a residential mortgage... upto 220k, I believe

Senior_Paper_Monitor

If it helps, let me confirm that Conrad is 100% correct. Buy to Let mortgages run out at 75% - end of story - and they tend towards frighteningly expensive at that level!

There are a few 90/95% mortgages creeping back in for residential purposes (but they are not cheap and qualifying criteria are fierce).

Like most brokers, particularly in the current market, we will fully investigate anything with 'half a chance' but wouldn't waste an email chasing 90% Buy to Let proposals.

Conrad

And to add the C&G 95% deal like similar HSBC deals in the past are there to get people into the building so they can be sold insurance. A lowish proportion of 95% applicants will get accepted, but at least the Bank has had the chance to arrange insurance and pensions!

MATTHEW124

Thanks for your comments. what do you guys know about Let to Buy - could this be an alternative way to get a second property? any pit falls I should be aware of?

luckyfool

As far as I'm aware that "95%" Lloyds/C&G deal is a 75% deal dressed up as 95%. i.e. A relative has to lock 20% of the purchase price into a savings account with C&G, which the mortgage lender can grab if the mortgage defaults.

theartfullodger

Does any one know where or if I could get a 95% or 90% LTV Buy to Let mortgage

No:

As said, assume 75% at best: And if you are that short of funds..


ONLY rent if you can cope with the financial & emotional agrro of the "Tenant from hell" who you can't get out for 9 months whilst you keep paying the mortgage etc./ etc... and legal fees (to get him out) and then he 'phones you saturday 10:22 pm "Toilet's bust wodja gonna do..." "Sorry to hear that dear sir, when did this start" "Wodja goona do... wodja gonna do - dunno 3-4 weeks maybe,.,.. wossat gorra do 'wiv it??" "OK, I'll get my man to call you Monday 1st thing..." "Nah, you gorra fix it nah..>""""


(PS Yes, you have a legal requirement to fix the gentleman's toilet, notwithstanding his not having paid you for 7 months,.....")

If you are not sure you can cope, find another business to go into...

And remember that your current lender may up the interest rate/charge fees as you will be letting..

& there are many other costs incurred when renting: And do your numbers only assuming you can rent for 10 or each 12 months....

(Apologies to other readers for posting this advice yet again...)

Cheers!

Lodger

_Andy_

I'm not sure why there has been mention of resi rates/LTVs on here, the OP is clearly wanting and requiring a BTL.