buy to let mortgage?

Kimberley82

are they different from a normal one?

I live in a rented house that we get cheap for the area. I can not afford to buy in the area but will not move due to the childrens schooling. We are considering buying a house in a cheaper area to rent out.

GMS

Buy to Let is underwritten differently.

If you are a first time buyer first time landlord you will find it difficult to obtain a mortgage.

Do you have a deposit? You would need 25% minimum to have any chance

Kimberley82

GMS wrote: »

Buy to Let is underwritten differently.

If you are a first time buyer first time landlord you will find it difficult to obtain a mortgage.

Do you have a deposit? You would need 25% minimum to have any chance

I have £100,000 to put down and looking at a property of about £125,000

GMS

Assuming no credit problems you should be able to find something at that level.

Best to speak to a 'Whole of Market' broker to get the best chance of a decent product.

Buy to Lets work on the rental figure against the mortgage payment. Usually need the rent to be 125% of the mortgage payment. If you get a small mortgage like you require you should be miles in on rental calculation.

Kimberley82

GMS wrote: »

Assuming no credit problems you should be able to find something at that level.

Best to speak to a 'Whole of Market' broker to get the best chance of a decent product.

Buy to Lets work on the rental figure against the mortgage payment. Usually need the rent to be 125% of the mortgage payment. If you get a small mortgage like you require you should be miles in on rental calculation.

I did have a CCJ and did have over £40k of debt but its all paid off now

GMS

Kimberley82 wrote: »

I did have a CCJ and did have over £40k of debt but its all paid off now

When was the CCJ and how much was it for? Did any of the debts have missed payments or defaults?

Kimberley82

GMS wrote: »

When was the CCJ and how much was it for? Did any of the debts have missed payments or defaults?

7 years ago and yes most of they had defaulted

Kimberley82

though if it makes any difference we got accepted for a mortgage a few moths ago but the house fell through.

Thrugelmir

Kimberley82 wrote: »

I have £100,000 to put down and looking at a property of about £125,000

You may find the fact that require the little finance required counts against you. As there's little profit for a lender on a £25k advance.

BTL lenders have minimum lending requirements.

Kimberley82

Thrugelmir wrote: »

You may find the fact that require the little finance required counts against you. As there's little profit for a lender on a £25k advance.

BTL lenders have minimum lending requirements.

really? god you cant win can you.

would that be the same with a normal one?

GMS

Kimberley82 wrote: »

7 years ago and yes most of they had defaulted

When was the last default?

The low loan amount should not be an issue as it will be £25,000 needed which will be the minimum for a lot of lenders. If the loan needed to be a bit more then as long as the rent covered it, which it should then this could be arranged.

As for the small loan hindering you, there are 2 ways to look at it.

1/ Lender stands to make little profit on the loan.
2/ Little profit but no risk whatsoever. If needed to repossess they could not lose.

Speak to a broker. Your case is not straight forward due to First Time Buyer and previous adverse credit, however your deposit will work massively in your favour.