need £15000 for a deposit

robinsonrobbo1973

hi all i need to borrow £15000 for a loan on a buy to let property. my personal mortage company will loan me it at a rate of 6.99% over 25 years interest only £90 per month. i was wondering is this the best route to go to keep repayments low or is there another way to loan the money and keep repayments low.
thanx.

jonesMUFCforever

How do you intend to fund the rest of the purchase?

robinsonrobbo1973

buy to let mortage but need 15% deposit. i aint got a pension so have been advised property. and rental is quite good in ne england. thanx

jonesMUFCforever

What about other costs like refurbishments etc.

What I'm really trying to get at is do you really have sufficent capital to go ahead without really stretching yourself?

Might be easier to get an FA to advise you about that pension plan.

robinsonrobbo1973

doing it up via 0% cards and rental profit will pay them off.thats the plan anyway.

jonesMUFCforever

Thought so - disaster looming.

Don't let me put you off its your decision and you should know where the Debt free wannabee board is when it is needed.

Hermione54

Please be very careful. I got myself into fairly deep pooh when I did this some years ago and the tenant stopped paying rent. It took months to get him out, even though he didn't have a leg to stand on, and I had to finance the mortgage with no rent coming in. I had to sell the house eventually to avoid bankruptcy, but still lost a lot of money.

You may be lucky, but you really need to have enough savings to cope with non-paying tenants, void periods between tenants, and tenants who do a midnight flight leaving large debts behind. There are even tenants who will trash the place just for fun. Sorry to sound depressing - you may be OK, but take care and ask for cast iron references.

wardlaw

Robin what you are suggsting is infact 100% lending scenario

Can the repayments on the BTL Mortgage and the secure loan match the momthly rental

you can obtain a 90% btl mortgage below 6.99%

johnmw5@hotmail.com

jay78

wardlaw wrote: »

Robin what you are suggsting is infact 100% lending scenario

Isn't that what everyone's doing nowadays?

seven-day-weekend

jay78 wrote: »

Isn't that what everyone's doing nowadays?

And maybe that's why our country has the worst debt figures in years.

OP, I don't think you have enough money to do this. You could be in debt/negative equity/no cashflow in no time.

Why not get a pension sorted out and start saving something towards that deposit and renovation?

jamesd

Wardlaw, is there any prospect of you complying with the mortgage adviser code of conduct or should I just accept that you intend to continue breaking it?