small mortgage low deposit btl

trooperdog

Just a quick one, I currently have a mortgage of £94k, I purchased the house 2 months ago for £105k its probablly worth a bit more now as I'm half way through doing it up, anyway, I have seen a house for £45k that I'm very interested in doing up and renting out however I'm stuggling to figure out the best way to finance it as I only have a small deposit (10%) max.

I am aware of the LTV for BTL so I was wondering if anyone had any ideas on the best way to finance the house?

My salary is £32k
Partner is is £14k

have about £1300 per month outgoings including £670 mortgage the rest is just bills (no other borrowing).

Any advice would be great.

Thanks.

Troops

kingstreet

If the next property was in rentable condition, I'd say you'll need a minimum of 15% deposit, possibly more. However, if it's in need of work, you might have a problem getting the money to purchase the property if there's a retention on the mortgage.

You haven't finished the current one, so remortgaging that is likely to be a problem as you're within 6 months of purchasing and the amount of equity you have in it is questionable/low.

I can't see a solution to this. Sorry.

trooperdog

thank you Kingstreet I too can't really see how I could solve this, the property is just in need of cosmetic refurb nothing crazy. If I did manage a bigger deposit what is the deal with having another mortgage? Is it likely I would be accepted even though I have only just got the first mortgage?

kingstreet

It's possible to have another mortgage, especially if you're looking for another BTL. However, you'll need to be careful how to approach something like this as the property value is going to be below many lenders' minimum value.