85% buy to let mortgages return.

IveSeenTheLight

Scots wrote: »

Ok I actually phoned bank of Scotland with whom I already have a btl mortgage and they said they don't do it anymore and put me straight through to Halifax. So I din't get the opportunity to check the website.

From the Woolwich link you provided I notice they want £20k income, which isn't helping me.

What you may also wish to consider is borrowing on your own property to finance the BTL.
That is legally allowed.
You can still claim the interest of the mortgage up to the valuation / purchase price.

Vincenzo

I have been keeping an eye on Bank Of China. Looks reasonable:

http://www.bocukltd.co.uk/mortgage/buytolet.html

IveSeenTheLight

Vincenzo wrote: »

I have been keeping an eye on Bank Of China. Looks reasonable:

http://www.bocukltd.co.uk/mortgage/buytolet.html

Lifetime Tracker +3.38% does not look that good to me.

Due to the costs for financing BTL mortgages, I'm being more and more swayed to take on the finance on my own property and do away with the BTL mortgages

Vincenzo

IveSeenTheLight wrote: »

Lifetime Tracker +3.38% does not look that good to me.

Due to the costs for financing BTL mortgages, I'm being more and more swayed to take on the finance on my own property and do away with the BTL mortgages

The ERC is only in the first year though and the arrangement fees are low compared to others so it could be a good option if you have to refinance a BTL loan. With interest rates likely to stay low for a while it could be a good short term option.

If you can borrow all you need on your own property, it is a no-brainer! My resi mortgage is 0.79% above base and I will not be paying anything off that before I have to. Instead I will look to reduce the more expensive BTL loans.

Thrugelmir

Vincenzo wrote: »

I have been keeping an eye on Bank Of China. Looks reasonable:

http://www.bocukltd.co.uk/mortgage/buytolet.html

Know someone that has successfully arranged finance through BOC . Very thorough, equally as tough at underwriting stage as HSBC.

Thrugelmir

Blacklight wrote: »

in order to end up with a property that will double in value given time (historically 10 years).

Now a record in the history books not a basis for future investment.

Conrad

IveSeenTheLight wrote: »

Youv'e got to wonder if lenders prefer BTL to owner occupancy mortgages.

They certainly stand to make more money with the arrangement fee's and rates.

According to the reps from Nationwide (TMW is the B2L arm of Nationwide) and Ipswich Building Society, they prefer B2L as the arrears are lower than owner occupier. They cite the fact owners have put large deposits into the fray.

Ipswich tell me they are more dubious of shared and equity housing association schemes now, as the arrears are high.

Conrad

IveSeenTheLight wrote: »

that said it's strange to have a stipulation on personal income level for a BTL, it's usually requires a percentage of the mortgage interest (125%) as a rental income

The lenders that require a minimum level of personal income, do so as they want to establish the general financial capability of the applicant which is pertinent when there are rent voids.

Some very competitive and careful lenders do not require such, and will base affordability entirely on the rental.

de1amo

i know landlords look at yields of rent but i cant understand the concept of buying an investment that is devaluing faster than the rent comes in!--if the banks saw property as a safe investment they wouldnt be so 'tough' on lending criterior.

Vincenzo

de1amo wrote: »

i know landlords look at yields of rent but i cant understand the concept of buying an investment that is devaluing faster than the rent comes in!--if the banks saw property as a safe investment they wouldnt be so 'tough' on lending criterior.

Clearly the aim is to buy an asset that appreciates over time!