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BTL mortgage v Cash Question

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Comments

  • vectistim
    vectistim Posts: 635 Forumite
    Part of the Furniture
    GMS wrote: »
    The Mortgage Works are scrutinising first time landlord applications now. Although no minimum income they will look at the ability to withstand rental voids. They also restrict lending to 4.25 x income. Will you fit this?

    Not relevant to the OP, but that income bit put the wind up me and I had to go straightaway and check, but that 4.25X is only for first time landlords.
    IANAL etc.
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    What's the gross yield on this BTL.

    What plans do you have that need cash.

    Using debt will just reduce your BTL returns unless you have another invetment in mind.
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 17 December 2012 at 2:13PM
    vectistim wrote: »
    Not relevant to the OP, but that income bit put the wind up me and I had to go straightaway and check, but that 4.25X is only for first time landlords.

    Correct but the OP is a first time landlord hence the response
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    richards123 wrote: »
    3. we have current mortgage with them and they ok'd that with no bother at multiples that more than one broker couldnt get near to. It was also interest only and that was 18mths ago.

    Times have changed. The fact your residential mortgage is on an interest only basis may be an issue with the underwriters.
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