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BTL mortgae
hardass_ets
Posts: 30 Forumite
Trying to work out if its worth a BTL investment of 120K and the aprox rent would be 115wk.
Can someone tell me the average mortgage rate for a btl mortgage with a big deposit these days?
Can someone tell me the average mortgage rate for a btl mortgage with a big deposit these days?
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You really do have the makings of a BTL landlord, get other people to do the work and you take the benefit.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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If the purchase price is £120k and the rent £5,980, the gross yield is just on 5% per annum.
Looking at 75% LTV, or a mortgage of £90k on £120k you're probably better off with a fee-free deal and the rate will be in the region of 4.5% to 6% pa. Interest-only payments would therefore range from £338 to £450.
Lower rates are available, but it wouldn't be sensible to consider spending £2,000 on a fee to save maybe 0.5% pa for a couple of years.
Working back, the £498 rent would allow you a mortgage payment of upto £398 if you go for a lender with a 125% rent to payment ratio.
HTHI 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.0
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