Buy to let Mortgage 75%LTV

clelly

Hi,

After a bit of advice here hopfully,

We are now going down the road of a BTL mortgage as we can't sell our own property at the moment and move in to our new home in 7 weeks. We are looking to rent our home out for the next year or two pending on the rates and costs involved.

Our home is valued at £220,000 and the loan is for £165,000 therefore it will be a 75% LTV and We have been told that we will get £800 per month rental . If the market picks up and our home sells in a yr we will have to hope that we can recupriate the arrangement fee from the sale.

The rates seem to be a little on the high side ,

Tracker 1 yr - 4.35% , 3% arrangement fee,

Tracker 2 yr - 4.99% , 2.5% arrangement fee,

Can anyone tell me if this a good deal .

Much Appreciated

clelly

luckyfool

Is it a good deal... not particularly, however on a rental income of £800 a month and the loan amount you are looking for BM Solutions (I'm assuming its BM) are one of the only lenders that will consider lending enough to you (i.e. beggars cant be choosers). If you have good personal income (i.e. substantially more than you would have needed to get your new residential mortgage) then alternate lenders might be willing to go beyond their standard rental calculations and offer a slightly better deal, or if you can go to 70% or even lower then better rates might come into play.

If you need the full amount and can't go below 75% then BM are probably as good as its going to get. You can either keep cutting the price until your house sells, or take the BM product, add the fee on, and retain the property on a rental until you can sell it for what you want. Whichever route you take has it's own risks associated with it.