FTB/Buy to Let

lestergun

There's no irony really.

The flat is 80k.

I have a 20k in savings for a deposit.

I have no debt.

Same employer for 6 years.

Houses in my area are 240k.

I currently rent for a very reasonable rate.

A property has become available and I don't really want to miss it.

My mortgage would be (BTL) £287pm, the property is want to buy is currently being rented for £525pm.

Problem is, I couldn't get a BTL mortgage as a FTB.

lawriejones1

If you can't get a mortgage, there's your answer :-)

lestergun

Question from OP:

"Does anyone know if there are any/many lender who will still consider giving a buy to let mortgage to first time buyers"

Response from lawriejones1:

"If you can't get a mortgage, there's your answer :-) "

Useful.

lawriejones1

lestergun wrote: »

Problem is, I couldn't get a BTL mortgage as a FTB.

...and I raise you your own statement which prompted my reply.

So you have tried and can't get a mortgage, so why bother asking here? If you ask me it's a stupid idea anyway.

bigadaj

lestergun wrote: »

There's no irony really.

The flat is 80k.

I have a 20k in savings for a deposit.

I have no debt.

Same employer for 6 years.

Houses in my area are 240k.

I currently rent for a very reasonable rate.

A property has become available and I don't really want to miss it.

My mortgage would be (BTL) £287pm, the property is want to buy is currently being rented for £525pm.

Problem is, I couldn't get a BTL mortgage as a FTB.

One issue is what you quote as your btl repayment. Given that it would be considered as a higher risk, and assuming that base rates get back to a remotely sensible level, then you would have to do your sums at an interest rate of what 8%?

Also the OP was being sensible, whereas you are being less so.

Why not buy his flat, live in it for a few years and then re-assess, potentially starting through a consent to let at first.

Trixi

An update for anyone else who is following/interested in this topic. I spoke to Nat West and they do offer FTB/BTLs for buyers with a 30% deposit and a minimum income of £20000 (this last is apparently a new requirement and all applicants have to meet it as a minimum). In practice this meant that the numbers work better for one person on a decent salary than two, in our case.

Next move will be to contact a broker to see what else is available - does anyone have a recommendation for a good one?

GMS

A 30% deposit opens up more options. Do you have 30%?

Right move is finding a broker. Many BTL products are broker only.

simpywimpy

My BTL mortgage is going through with the mortgage works run by nationwide and is based solely on the income from the property as I don't have a job other than my rentals.

chanton@mortgageforce.co.uk is my broker if that helps

Trixi

GMS wrote: »

A 30% deposit opens up more options. Do you have 30%?

Right move is finding a broker. Many BTL products are broker only.

Yes, we have 30% - plus fees and a bit of a cash buffer for emergencies.

That's interesting about many BTL mortages being broker only - I was hoping for some recommendations of good buy-to-let brokers who we might be able to work with.

Am I likely to need to pay a fee upfront to a broker, or only if/when the mortgage is arranged?

Trixi

simpywimpy wrote: »

My BTL mortgage is going through with the mortgage works run by nationwide and is based solely on the income from the property as I don't have a job other than my rentals.

[EMAIL="chanton@mortgageforce.co.uk"]chanton@mortgageforce.co.uk[/EMAIL] is my broker if that helps

Thanks you for that simpywimpy - can I ask if you also own other property? I know BTL mortgages are usually based on rental income and we're fine as far as that goes. The hitch seems to be that we are effectively first time buyers, with no other property or mortgages - it looks like some lenders need to take our income into account as a back-up.