Only need £ 15k mortgage-any options ?

spiritus

We're looking at an investment property valued at approx. £ 55000 with a monthly rental income of £ 400.


We have £ 40k of cash to put towards a deposit but we now realise that many mortgage companies don't offer loans of less than £ 25001. Obviously we can keep some of our savings and take the mortgage but this would affect our income projections.


I don't think a personal loan is a viable option long term either.


Can anyone please advise as to what our options might be ?


Thank you

Let_Us_See

Not a problem on value or borrowing amount. Recommend you seek help of a broker.

spiritus

Thanks but I've not come across any deals that offer loans for such a low value

RoaringTwenties

I think Skipton Building Society will offer a low loan, unless things have changed very recently they work on a minimum property value (£50,000 I think) rather than loan. I just re-mortgaged with a £22,000 loan and they were fine with that. I've only ever had mortgages with them, this last time I checked loads of other lenders but they all had minimum loans, usually as you say £25,000. I also have BTL with Skipton and have had nothing but good service.
HTH

Idiophreak

spiritus wrote: »

We have £ 40k of cash to put towards a deposit but we now realise that many mortgage companies don't offer loans of less than £ 25001. Obviously we can keep some of our savings and take the mortgage but this would affect our income projections.


I don't think a personal loan is a viable option long term either.

Why've you ruled out the personal loan? I'd imagine you're looking at <300/month for a 15k loan over 5 years. Obviously your profits may be pretty lean for that period, but then you'd be set - and would pay much less interest overall.

Alternatively, maybe look at the 25k mortgages and see if any of them would let you overpay the 10k back in again...

pjread

25-30k offset perhaps....? or 0% purchase/SBT credit card

probably worth finding a broker but you could probably get a personal loan for 15k around 4.5 to 6% from a high street bank

DrMagpie

Idiophreak wrote: »

Why've you ruled out the personal loan? I'd imagine you're looking at <300/month for a 15k loan over 5 years. Obviously your profits may be pretty lean for that period, but then you'd be set - and would pay much less interest overall.

Alternatively, maybe look at the 25k mortgages and see if any of them would let you overpay the 10k back in again...

Sorry to hijack the discussion but we're in a similar situation of needing only a small mortgage. Is it really OK to use a personal loan of say £10,000-15,000 instead of a mortgage (I was always told that you weren't allowed to do that)?

Idiophreak

DrMagpie wrote: »

Sorry to hijack the discussion but we're in a similar situation of needing only a small mortgage. Is it really OK to use a personal loan of say £10,000-15,000 instead of a mortgage (I was always told that you weren't allowed to do that)?

I don't see why not...You're not (often) allowed to use a personal loan for the deposit on a house, but I don't see why you wouldn't be allowed to use it for the balance.

spiritus

Thanks guys.


It seems our best option is to go for the £ 25 mortgage and then overpay as soon as possible.

[Deleted User]

Im going round in circles. I cant seem to find a re mortgage suitable for me either. I want to borrow £25,000 over either 11 or 15 years. I have a large deposit but cant seem to find any that you don't have to pay a fee to set it up, which in the end counter acts the point of changing as I don't save anything much..... and when the low rate ends (normally within 2years) its a lot more than my mortgage rate is now...
Edited just to say, im on a very low income and a few ive look at wont take anyone with less than £25,000 income.

spiritus

ImDoingItForMe wrote: »

Im going round in circles. I cant seem to find a re mortgage suitable for me either. I want to borrow £25,000 over either 11 or 15 years. I have a large deposit but cant seem to find any that you don't have to pay a fee to set it up, which in the end counter acts the point of changing as I don't save anything much..... and when the low rate ends (normally within 2years) its a lot more than my mortgage rate is now...
Edited just to say, im on a very low income and a few ive look at wont take anyone with less than £25,000 income.

I am also on a low income-some companies like Aldermore, Mortgage Works and BM Solutions do not have a minimum income requirement (I think)