Do mortage companys make exceptions when its buy to let?

Kayalana99

For example, we already have one house but have maxed our loan for wage allowed...

But want to buy another to let.

Is this possible if we had a deposit or is it simply we've borrowed the max amount and thats it?

ACG

A Buy to let is usually based on the rental income of the property. To some extent some/most lenders will want to check you can afford any void periods but in the main if the property has a decent rental potential you should be able to get a btl.

_Andy_

"Is this possible if we had a deposit"

Do you have a deposit?

kingstreet

Do you have 25% deposit?

Kayalana99

Not me personally, its kind of comlicated but my Grandad has sold up an investment which he has given to my Dad to invest and my Dad has invested it in a 'do up' property and once this house is sold my Grandad will be looking to invest elsewhere - but doesn't want any hassle whatsoever so won't want to be an LL himself. My Dad is moving abroad in a few months so isn't looking to do anything again after this as well.

If I had a soild plan in place it would be a done deal. Might not even need a mortage really... its all depending.

I was just wondering if thiers any point looking into it though as we have already maxed our loan rate out etc.

Plus its my next goal to get a 2nd property so even if it didn't work out that way, thats what I will be aiming for next...I know its not that simple but again - whats point in trying if thiers 0% chance of a mortage and I wouldn't be able to save 100k if it was a straight no. Would of had to look elsewhere.

Thanks for replys as well.

holly_hobby

Whilst there are BTL lenders that will consider a gifted deposit, the clue is in the title "gifted" - which means made without reservation, requirement of repayment or in exchange for any interest in the property.

Which on the basis of what you say (ie Grandad is looking for a temporary home for his capital and he wants it back), essentially means the terms of grandads donation will not meet the lenders requirement.

This also includes grandad signing a disclaimer stating that the gift is made without any benefical interest/requirement of repayment ..... which also means the lender will make no provision for his capital on any possession order - which may ulitmately mean that it may be lost upon forced sale.

Hope this helps

Holly