buy to let mortgage 0 cost of at present?

herbiesjp

Due to the low mortgage amount, the percentage fee may work out similar to a flat rate fee offered.

sindygirl58

luckyfool wrote: »

Some Buy to Let lenders have requirements that you earn over £25k or £30k per annum, while others also insist on you already having at least one buy to let property already.

Off the top of my head you should qualify for 70% of 89k based on 400 pcm rent assuming a 125% on a 4.99% rental calculation which is common.

on a loan of 52k I was given quotes for repayment over 15 years.. the monthly payments come to more than £450 a month, excl building ins and arangemnt fees added, so a rent of £425 would not equate. isnt this waht lenders look at? 25% dep BTW. Rate around 5.40% 2 yr fix.

400seems a low rent? how many beds?

TrickyDicky

Just a quick question - if you are on Interest only on your main property, how are you saving to pay off the balance when your mortgage completes? or are you expecting to move before then?

luckyfool

sindygirl58 wrote: »

on a loan of 52k I was given quotes for repayment over 15 years.. the monthly payments come to more than £450 a month, excl building ins and arangemnt fees added, so a rent of £425 would not equate. isnt this waht lenders look at? 25% dep BTW. Rate around 5.40% 2 yr fix.

400seems a low rent? how many beds?

On a buy to let the rental affordability is calculated on an interest only mortgage payment, as this is how the mortgages are typically setup. It's an investment property and the repayment vehicle would normally be sale of the property in the future. In fact it can be disadvantageous for tax reasons to have a buy to let on Capital and Interest as you are reducing your outstanding loan, and hence reducing the amount of interest you are paying which can be set against the rental income to reduce income tax liabilities.

luckyfool

TrickyDicky wrote: »

Just a quick question - if you are on Interest only on your main property, how are you saving to pay off the balance when your mortgage completes? or are you expecting to move before then?

Valid points, but this isn't what the OP is asking. It wouldn't effect the OP's ability to obtain a buy to let mortgage and its up to them whether they want to have their main residence on an Interest Only basis.