Let to Buy

greenjellybean

All was going swimmingly it seemed with my plan to borrow on the equity in my flat to use as a deposit on a new residential home and then rent out the flat. However my broker has just advised that the preferred lender wont do a buy to let mortgage, only a let to buy which is about a 1% higher rate. Needless to say, I'm not thrilled. Is this correct? Is it worth looking around for a lender that will do BTL rather than LTB? Or are they all going to be the same?

Thank you!

betmunch

greenjellybean wrote: »

All was going swimmingly it seemed with my plan to borrow on the equity in my flat to use as a deposit on a new residential home and then rent out the flat. However my broker has just advised that the preferred lender wont do a buy to let mortgage, only a let to buy which is about a 1% higher rate. Needless to say, I'm not thrilled. Is this correct? Is it worth looking around for a lender that will do BTL rather than LTB? Or are they all going to be the same?

Thank you!

If its Let to buy you need then its let to buy.

Most lenders that allow let to buy just use their standard BTL remortgage range anyway.

What lender where you looking at?

greenjellybean

betmunch wrote: »

If its Let to buy you need then its let to buy.

Most lenders that allow let to buy just use their standard BTL remortgage range anyway.

What lender where you looking at?

Thanks Betmunch. It's Platform. I have already paid the (albeit pretty cheap) application fee so I guess I will go with it if I can only have a Let to Buy. Why do you not hear of LTB mortgages more often? Dont lots of people do what Im doing?

betmunch

Platform? They have their own specific LTB range so your broker should have quoted from that when you asked. Think hes dropped a clanger there!!! Blame it on Platform though

Also, if I recall correctly, the LTB range is only about 0.1% higher than the normal range.

I've just done this scenario and I wouldnt pick platform unless the rate was very very good.

Its becoming more and more common due to the slow housing market and improving rental market.

greenjellybean

I think we went with them because of the low application fee. And it is low. As I say, I have paid that now so I think I will go with it. I might be remembering the original rate incorrectly. Perhaps it isn't very much higher at all. Who would you go with then? Just in case, there is a next time...

betmunch

I dont give out lenders names without doing a full fact find in case you go to them and fail on another area of the application.

Also, your broker may not have access to the same lenders as me.

greenjellybean

Just seen you are a financial advisor so appreciate you might not want to give away ALL your secrets for free!

vax2002

With immigration topping 600,000 a year and rising fast the surely rental property is going to be a goldmine.

betmunch

Its not a secret! I havent charged a client in ages!!!!

If I tell you a lender based on the fact they have better criteria for someone who is in a different position to you and you then go to them and fail the application due to something else thats not been mentioned here, that would have come up in a standard fact find I would feel that was my failing.

Hope you understand, the FSA and claims companies have made me think like this, others are more relaxed about it though

Crashandburn

Try Uswitch. They seem to have some good deals for this sort of thing