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Buy to Let Mortgage advice
Mr_Incredible
Posts: 247 Forumite
On my own mortgage on the family home the LTV is about 60%.
I'm looking at getting a BtL mortgage on a second home, how much deposit would I need to stump up?
I'm looking at getting a BtL mortgage on a second home, how much deposit would I need to stump up?
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Comments
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25% is the usual minimum.
Work the rental income back into a mortgage amount too. Take rent / 125% x 12 / 6% = £ mortgage amount, as you'll be able to borrow the lower of 75% of the value and the mortgage amount generated by the rental income.
Most lenders want the rent to be 125% of the monthly mortgage interest, assuming a mortgage rate of perhaps 6%pa.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
For those of you that dont do maths this means
£1,000 per month rent supports about £160,000 of mortgage
£500 - £80,000
£750 - £120,000
£1000 - £160,000
£1250 - £200,000I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0
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