BTL low mortgage

quixonte

Hi,

Could anyone help by telling me if the following is possible and any lenders that I should look at.

Looking for a BTL mortgage for a property I am looking to purchase for 31.5k. I would like a mortgage for 23.5k to keep me below the 75% LTV rate. Rental income would be around £325 per month.

I have a mortgage on my own home
value = 262k (approx)
current outstanding balance = 171k
Salary = 62k
No other debts.

My concern is around the fact most mortgage lenders only offer 25k minimum mortgages. I don't mind going to 25k, but always thought you should have a 25% deposit for a BTL, hence a little confused if I can get this to work.

Many Thanks
Q

ACG

BTLs start at 80% LTV.

What your after shouldnt be a problem, you may not have every lender available to you but its doable.

I would suggest you speak to a broker though.

vectistim

The valuation of £31,500 may be too small for some lenders.

An alternative may be consider adding to your existing mortgage (although you are likely to hit a 75% LTV rate boundary as a valuation of 262k means you're rather close to the 250k stamp duty point that distorts the market value and a pessimistic surveyor could aim at the 250 mark)

quixonte

Great - thank you both. I will go and speak to a broker.