BTL Mortgage

Hello123_2

Hi,

I am hoping to take out a BTL mortgage. Please could someone give me a bit of advice how long it takes & what I need to provide.

Obviously I have I.D, last 2 years wage slips (earn £30k pa) and techinically have a 25%-30% deposit (please see thread below re BTL deposit how as to how real this deposit actually is in the lenders eyes). Also aware I need to take out landlords insurance, have gas & electric checks etc done.

I've been reading that I need to provide proof of rent - where/how do I get this? A friend is interested in renting off me but not for certain, if that's any help?

I also own my own property where I live - I have a £100k mortgage and the house is worth about £190k. Not sure if/how this affects the process.

Hope someone can point me in the right direction!

archery

when i applied for a BTL mortgage a supplied a letter from
a local letting agent confirming what the current rent would
be for the type of property / number of bedrooms your property has. that was accepted, but suggest you check with mortage company

hope this helps

The_J

The rent will be determined by the banks valuer, you don't need to provide anything. I believe archery would be talking about a Let To Buy situation.

How long it takes depends on the lender you use, could be a few days (BM Solns) to a few months (won't name names). It's important to find out from the estate agents selling the property how quickly they need it to be done.

Otherwise you seem good to go.

Hello123_2

archery wrote: »

when i applied for a BTL mortgage a supplied a letter from
a local letting agent confirming what the current rent would
be for the type of property / number of bedrooms your property has. that was accepted, but suggest you check with mortage company

hope this helps

Thanks, do they charge for this?

Hello123_2

Also forgot to ask are BTL lenders generally ok if the property hasnt got a kitchen? I know its a no no for residential mortgages.


Obviously I plan to put a kitchen in straight away. Thanks

Thrugelmir

Hello123 wrote: »

Also forgot to ask are BTL lenders generally ok if the property hasnt got a kitchen?

Won't help the rental value at the time of valuation ..........

Hello123_2

Thrugelmir wrote: »

Won't help the rental value at the time of valuation ..........

I appreciate this & would be looking to pay £10k less to reflect this.

So are BTL mortgages ok with no kitchen & bathroom? (house needs complete refurb - someone has started by ripping everything out, really sensible so it's inhabitable).

thanks

kingstreet

No. It's unlikely to be considered mortgageable if it isn't in immediately lettable state.

As I suggested in your other thread about the purchase at undervalue you really need to find yourself a good independent or whole market broker to put this proposition together for you.

You aren't going to find a lender on the high street who will take into account these issues.

Hello123_2

kingstreet wrote: »

No. It's unlikely to be considered mortgageable if it isn't in immediately lettable state.

As I suggested in your other thread about the purchase at undervalue you really need to find yourself a good independent or whole market broker to put this proposition together for you.

You aren't going to find a lender on the high street who will take into account these issues.

Thank you for your advice re deposit. I have come to the conclusion it is just going to be too complicated so I am looking at standard BTL with a 25% deposit from my other gran.

I know this might sound stupid, but could I not just put a really cheap bathroom & kitchen in before the mortgage valuer visits? I understand I wouldnt legally own the home so it's at my own risk - but I'm talking like a 2nd hand suite out of the local newspaper probably for free?

Just to get my mortgage, then obviously put a brand new in once it's mine??

I understand people with cash usually buy these properties but some of us aren't lucky enough to have £100k lying around!

kingstreet

You could try getting that past the vendor's solicitor, but I don't fancy your chances.

Hello123_2

kingstreet wrote: »

You could try getting that past the vendor's solicitor, but I don't fancy your chances.

Could I not just ask the Vendor if it would be ok to put a cheap bath & kitchen in? The house is empty anyway.

I'm not trying to defraud anyone - I'm just trying to meet the mortgage criteria.

Anyone had any experience of this?