Do buy to let mortgages only come with 75K LTV

sukh38

Hi,

I am looking for a buy to let mortgage with a 90% LTV I am guessing this is not possible?

kingstreet

You're right. There aren't any.

There's the odd 80% knocking around.

Typically a BTL mortgage;-

- is 75% maximum
- requires rental income to be 125% of monthly mortgage interest at 6%
- requires a personal income of at least £20k, possibly more
- the applicant to be a homeowner.

sukh38

kingstreet wrote: »

You're right. There aren't any.

There's the odd 80% knocking around.

Typically a BTL mortgage;-

- is 75% maximum
- requires rental income to be 125% of monthly mortgage interest at 6%
- requires a personal income of at least £20k, possibly more
- the applicant to be a homeowner.

so its very unlikely to be approved as I am a first time buyer ?

GMS

There are no 90% BTL's. Do you now not need a 90%?

sukh38

GMS wrote: »

There are no 90% BTL's. Do you now not need a 90%?

yes I have £10k saved living with parent not looking to move out but invest in a property

kingstreet

Lenders tend to assume a FTB is using the BTL product as a means of circumventing the income rules on residential mortgages where the bigger deposit can be a back door to "self-certification." If not income, it's also a means of getting interest-only via the back door.

In some areas, the rental income more than covers the mortgage interest, so a low-earner can get a more expensive property without evidence of income.

The FSA/FCA is particularly interested in this and is monitoring how lenders police such cases.

sukh38

kingstreet wrote: »

Lenders tend to assume a FTB is using the BTL product as a means of circumventing the income rules on residential mortgages where the bigger deposit can be a back door to "self-certification." If not income, it's also a means of getting interest-only via the back door.

In some areas, the rental income more than covers the mortgage interest, so a low-earner can get a more expensive property without evidence of income.

The FSA/FCA is particularly interested in this and is monitoring how lenders police such cases.

but does not being a homeowner means first time buyer are unable to bet a buy to let mortgage ?

kingstreet

Yes. I can't think of a lender which would offer one. One of the other advisers may have an idea of one which does.

Let_Us_See

There are a couple of lenders who would consider a BTL by a FTB. However, minimum 25% deposit required and £25,000 minimum personal earned income.

Leon_W

You need to be a homeowner to be elegible for a BTL. As Let Us See states, off the top of my head, I can think of only one lender that will consider a BTL for a FTB and even then they will only base the loan size on earned income and not rental income.