monthly cost of btl mortgage

blanchedalmonds

roughly how much would a btl mortgage of £60000 cost me a month?
maybe if someone could quote repayment and interest only prices would be good for comparisson. thanks.

GMS

Would depend on Loan to Value, fee option, criteria etc etc.

Many BTL mortgages are broker only. Have you considered speaking to a broker?

biglugs

blanchedalmonds wrote: »

roughly how much would a btl mortgage of £60000 cost me a month?
maybe if someone could quote repayment and interest only prices would be good for comparisson. thanks.

I'm sorry, but if you don't have the ability to use a spreadsheet or even an envelope and paper to work this out you shouldn't even begin to contemplate a Buy to Let Mortgage.

You are talking about a serious investment decision - I suggest before you go any further you do some more studying of what a BRL entails.

Thrugelmir

biglugs wrote: »

I suggest before you go any further you do some more studying of what a BRL entails.

What sort of a Brazilian?

kingstreet

The components of a calculation to establish monthly cost are mortgage amount, rate and term. Two of the three are missing.

_Andy_

blanchedalmonds wrote: »

roughly how much would a btl mortgage of £60000 cost me a month?
maybe if someone could quote repayment and interest only prices would be good for comparisson. thanks.

could you not google 'mortgage calculator' yourself?

lonestarfan

I was thinking of doing a BTL and found it hard to establish what is a true rate that i could actually get. They are commercial loans so are bit harder to be sure that would be the rate you would pay. It is hard to find rates that will actually then apply to your circumstances. my colleague at work has 2 BTL & we have a bit of a chat now and then about them. She got one at 4.99% recently but that was with a 30% deposit. Certain products are also only available if you earn £25000 (she doesn't) or above even tho the loan is based on rental income it does also have criteria such as a minimum salary. Then you have to calculate the monthly repayment and compare it to the rent. For her mortgage she says the rental income has to be 125% of the months mortgage payment but she was caught out as it had to be of the SVR rate whereas her current monthly payment is lower due to a fixed rate. So then she had to put more deposit again and so it went on and on apparently. She says she used a broker as even tho the local Building Society had a BTL mortgage product there were so many conditions that they weren't really a competitive product. She say the broker came with hundred of offers on his laptop but in reality there were 2 that were acceptable with her salary, rent and deposit combination and that was with a 30% deposit. I found a lot of info on google where if you pick a product you can click on it and it tells you if its a 125% of the monthly payment etc but I couldn't find anything as good as she got at 4.99%.

kingstreet

When considering a BTL, I suggest you adopt 125% of the monthly mortgage interest at 6% for the target rental income, as this will cover practically all eventualities.

The usual maximum loan is 75% of the purchase price.

Some lenders have a minimum personal income and most require you to own a residence before they will accept a BTL application. All will want a clean credit history.

The BTL market is still broker-centric, so that would be your best port of call for help.

Breaking your post up into paragraphs would also assist your readers.