LLs mortgage cost

dodger1

My LL purchased the property in 2006 for £144,000 on a BTL mortgage. I know nothing about these types of mortgages, whether deposits are needed for instance. So based on the above figures and the minimum deposit (if any) what do you think the monthly repayments would be.

I ask because I've received a section 48 because my LL hasn't been paying the mortgage and I now have to pay my rent to a managing agent. Speaking to them on the phone they say that if the rent covers or nearly covers the mortgage they are normally happy to let the tenant stay. Unfortunately they wouldn't say what the mortgage payments were so just wondering what a ball park figure could be. No doubt I will hear eventually but just wanted a heads up in case I need to start looking.

theartfullodger

I'm paying on 3 BTL deals between 2.25 & 4.5%, interest only (a very common deal for LLs..).

So, for a £130k mortgage, interest only..
3% £325 per month..
4% £433.33 per month
5% £541.67 per month..


Someone will be along soon to explain my maths is Rong..

Any landlord who can't pay mortgage during lowest-ever interest rate periods is either bonkers, crooked or up to something very funny...

Cheers!

Artful (MA, Mathematics...)

steve1980

dodger1 wrote: »

My LL purchased the property in 2006 for £144,000 on a BTL mortgage. I know nothing about these types of mortgages, whether deposits are needed for instance. So based on the above figures and the minimum deposit (if any) what do you think the monthly repayments would be.

I ask because I've received a section 48 because my LL hasn't been paying the mortgage and I now have to pay my rent to a managing agent. Speaking to them on the phone they say that if the rent covers or nearly covers the mortgage they are normally happy to let the tenant stay. Unfortunately they wouldn't say what the mortgage payments were so just wondering what a ball park figure could be. No doubt I will hear eventually but just wanted a heads up in case I need to start looking.

What's the rate that your landlord is paying and how much deposit did he put down?

theartfullodger wrote: »

Someone will be along soon to explain my maths is Rong..

No, just your spelling!

dodger1

steve1980 wrote: »

What's the rate that your landlord is paying and how much deposit did he put down?

I've no idea, was just looking the worst possible scenario.

G_M

There are somany variables that you do not know (size of mortgage, rate etc) that it is a pointless question. Sorry.

Assuming your LL has a BTL mortage,or CTL, your current tenancy agreement remains valid and must be adhered to by the new landlord (bank, represented by a managing agent?).

What kind of TA do you have? Fixed Term? Starting when? For what Term/Period?

dodger1

No need to say sorry G_M, I was just looking for the worst case ie no deposit and a high interest rate just to get some idea. My tenancy has been periodic for about two years now and originally started on the 12th of the month. Yes the new LL is the managing agent instructed by the receiver.

Beckyy

The minimum deposit is usually 15% on BTL mortgages, that I'm aware of. Fingers crossed it works out okay for you.

dodger1

Beckyy wrote: »

The minimum deposit is usually 15% on BTL mortgages, that I'm aware of. Fingers crossed it works out okay for you.

Thanks Beckyy, I'm not really worried as if they have to sell and I get evicted it wont be too hard for the council to house me. I'm over 60 and where I live there isn't too much of a waiting list for the over 60s.

The other good thing is that my deposit wasn't held in one of the schemes even though it's shown as being in the TDS on the original AST. The receivers said as I have proof of paying the deposit they will put the money in one of the schemes and add the amount to the mortgage arrears of the LL. So not all bad news.