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Buy-to-let mortgages on new builds

GrandadRob
GrandadRob Posts: 91 Forumite
in Mortgages & endowments
We decided to get a new build flat near to us, negotiated a really good price. Our mortgage broker had previously said, no trouble getting buy-to-let mortgage related to the income potential of the flat.

Went back to him yesterday after securing the purchase deal. He did some homework and then said, can't get you a buy-to-let mortgage on a new build. After one year of letting no problem, but not on new build.

Any thoughts or experiences on that one please.
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Comments

  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    What is the Loan to Value?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • GrandadRob
    GrandadRob Posts: 91 Forumite
    Flat purchased at £85k following £15k off the asking price. Mortgage required is £50k

    The rental potential of the flat is £500 pcm
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Do you own any other Buy to Lets? Do you own a residential property?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • GrandadRob
    GrandadRob Posts: 91 Forumite
    I own my own house, but nothing else.
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Do you have an income? If so how much a year?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • GrandadRob
    GrandadRob Posts: 91 Forumite
    edited 17 March 2011 at 8:59PM
    Retired, small pension.

    I can see where you are going, but what about the original question regarding new build BTL properties.
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Where has your broker tried?

    How old are you? What is your 'small' income amount?

    Some lenders will consider the new build flat but minimum earned income is often needed.

    More to consider than the property alone.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • saverjustice
    saverjustice Posts: 192 Forumite
    Don't do it.
  • kingstreet
    kingstreet Posts: 39,450 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    edited 17 March 2011 at 11:19PM
    On the little information available, Halifax and Woolwich appear to have products.

    This does not guarantee the lenders will accept an application, merely that they could be examined further as a possible source of mortgage finance. Geographical or other restrictions may apply.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • jonathanmiller
    jonathanmiller Posts: 21 Forumite
    Issues are new build flat and first time landlord.

    You will find you're restricted to 65% LTV.

    Also worth checking with the developer as to how much exposure there is to other lenders on the site as some don't want to lend to over 30% of the total development. The Mortgage Works and BM Soultions are two options.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice
This discussion has been closed.
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