Advice on buy to let mortgage

bengy01

Hi there,

Bit of a complicated question but I'd like to know if anyone out there can give me some advice.

Myself and 2 of my brothers would like to buy a property as Buy to Let.
We've identified a suitable property valued at £220,000.
One of my brothers who is not a homeowner has a £25k deposit ready.

Myself and the other brother do not. However we are homeowners both with outstanding mortgages of £90,000 on properties valued at £120,000.

My thought was that the 2 of us could try and get advances on our Nationwide mortgages (to the value of £30,000 total) and use this to add to my other brother's cash of £25k.

This would give us a total of £55k which against the value of £220 would be LTV of 75%.

The property we are looking to buy receives £2100 in rent per month when rented.

Any wise words from people?

Thanks in advance.

harvey115

Seems like a very much of a doable case and straight forward.

Since the rent is £2100 its just about double the monthly mortgage payments at 7% (£1,166).

Get yourself a broker and all should be good.

Thrugelmir

bengy01 wrote: »

Myself and the other brother do not. However we are homeowners both with outstanding mortgages of £90,000 on properties valued at £120,000.

My thought was that the 2 of us could try and get advances on our Nationwide mortgages (to the value of £30,000 total) and use this to add to my other brother's cash of £25k.

Two issues arise from this.

Firstly the effect on your own mortgages. Change in overall LTV etc.

Secondly the use of the funds. As you may receive a negative to releasing the funds for use a deposit. Also from the BTL lenders perspective. As this merely increases the risk should you end up in financial trouble.

Leveraging has had its hey day some years back. Lenders are increasingly expecting people to inject their capital into business ventures which BTL is.

bengy01

Thanks both for your replies.

It seems that the Broker is going to be the best route - so I can asses the options.

I'll let you know how I get on. Anyone Brokers out there who want to contact me directly, please send me a private message.

Thanks again

dunstonh

Anyone Brokers out there who want to contact me directly, please send me a private message.

That would be against board rules and the decent mortgage brokers here wouldnt do it.