BTL Mortgage Queries

PoorDave

Three quickies:

Can you get BTL mortgages where you can borrow more than 90% of the property value? If so where from?

If you take out a BTL mortgage, you seem to need to get the rental potential of the intended purchase property checked, and then it must be at least 125%/130% of the monthly mortgage payment. Does this process need to be repeated at any stage once you have bought? For example what happens if rental values go down?

If a person wishes to buy a second property to renovate then sell on, what type of mortgage and deposit would normally be used for this?

Any answers gratefully received! (and no discussions about whether BTL is viable!)

david29dpo

i have not come across any BTL where you can borrow more than %85. none of mine had been rechecked after i have bought. i use BTL to buy property to renovate and sell on because i find that the easiest way.

PoorDave

david29dpo wrote:

i have not come across any BTL where you can borrow more than %85. none of mine had been rechecked after i have bought. i use BTL to buy property to renovate and sell on because i find that the easiest way.

There is at least one i found at 90%. I don't have the name of the lender with me at the moment

The mortgage advisor i used last time we moved says you can get 95% but with "horrendous underwriting conditions"!

How many BTLs do you have, and how many renovations have you done?

I presume using a BTL mortgage is ok if you can afford the rent, as the lender will simply see the renovation period as a rental void. By using BTL you can presumably get away from the borrowing being assessed against your income, perhaps?

david29dpo

the idea behind BTL mortgages is you need no income, the rent is used to calculate the amount you can borrow. i have many BTL and a number of renovations under my belt.

lady123_2

is it best to use a btl mortgage if your buying homes to do up and sell on,(whilst living in them at the same time) or a basic interest only mortgage, that reduces your mortgage everytime you make a profit and move home then add the profit from previous house to to your next mortgage so that you end up with less and less of a mortgage, (if you made a profit) wouldn't the lender want to know where you were living if you asked for a btl mortgage and wanted to live in the property?

PoorDave

lady123 wrote:

is it best to use a btl mortgage if your buying homes to do up and sell on,(whilst living in them at the same time) or a basic interest only mortgage, that reduces your mortgage everytime you make a profit and move home then add the profit from previous house to to your next mortgage so that you end up with less and less of a mortgage, (if you made a profit) wouldn't the lender want to know where you were living if you asked for a btl mortgage and wanted to live in the property?

I am fairly sure the lender would need to know where you were living.

This is not what i am asking though