A few quick btl questions....

bobbybishop · 31 March 2012 at 10:32AM

I bought my flat (ftb) for 117.5k 6 months ago with a 100k mortgage. How easy is it to get a btl mortgage now? i've tidied the place up - new bathroom, stripped and painted the walls, put some timber flooring down, mainly cosmetic except the bathroom but say it is now worth 125k and that in 6 months time i'll only owe 96.5k (20 year mortgage) then there is in theory nearly 30k equity. Can I use that as a BTL, or further can I now use that to get a secured loan - do they send a surveyor round to see what your house is worth? in theory i'd like to borrown 10k (I can only borrow if it doesn' take my equity down o less than 15%, but surely you'd need a surveyor to judge what it's worth?)and use 5k of savings to put down as a 25% deposit on a 60k btl property. Will they let me do this so soon after buying my first property?

Dave_Ham · 31 March 2012 at 10:40AM

Hi there,

A few considerations for you, as to be honest you need to read up on here or get yourself a broker to even think about progressing this.

The most you will get is 75% loan to value on a buy to let first time landlord. You need to have a super sharp credit rating and be careful as there are chunky product fees attached..
If this is as a stepping stone, you could ask your lender for consent to let which is likely to be cheaper but not if this is a money making venture
When you remortgage or buy a property, the place is always measured by a surveyor working for the bank. Sometimes they will do a computerised valuation, although typically they would at least drive past and often a full valuation. If you are tight on the lending limits then they will undertake a personal valuation

Theres some information as a starter, but genuinely this is only scratching the surface. It is a lot harder and more expensive than these types of transactions were back in the day....