Buying to let info

[simon]

Anyone got any information for me regarding getting a buy to let mortgage?


question I have are things like;


1, What kind of mortgage deposit am I looking at when compared to the deposit required for a residential mortgage ?


2, How high would the mortgage monthly payments be, per month, when compared with a residential mortgage ?


3, is there a time required for me to live in the house before I can rent / let it out ?

Pixie5740

1.Generally you require a 25% deposit but I have seen some BTL mortgages advertised with lower deposits required.

2. Depends on how much you borrow. BTL mortgages tend to be interest only so repayments are lower than residential mortgages which tend to be repayment (but not always).

3. No with a BTL mortgage you wouldn't live in the property before letting it out.

[simon]

Thank you,


3. what if I want to live in the property for a year or so before I let it out, would that be OK ?


And is it possible for the house to be 'mine' eventually when the interest and mortgage are paid off ?

Pixie5740

If you wanted to live in the house yourself you would apply for a residential mortgage. Then if and when you want to let the property you would apply to your lender for Consent To Let. If granted your lender may change additional fees and interest for doing so. Usually you have to apply for CTL every year or two then eventually you would change to a BTL mortgage.

Who else would own the house once the mortgage has been paid off? If your name is on the deeds and the mortgage then yes the property would be yours.

[simon]

so lets say, I get a residential mortgage, I pay the 5% deposit and live in the house. As and when I want to I apply for CTL, If granted what additional fee's would I be looking at ?


You said I would be looking at paying 25% deposit on a BTL mortgage.


So if I get a residential mortgage and pay 5% deposit on it, when granted for a BTL mortgage would I be looking at paying 20% ? that then equals to the 25% you mentioned above ??



Is that rite ?

Pixie5740

The fees charged vary from lender to lender so I couldn't tell you. Sometimes the amount of equity in the property can affect the decision to grant CTL.

Yes you might have to stump up more of a deposit when the time comes to change to a BTL. Who knows what the lending rules will be when that time comes.

I don't think any of this is necessarily a ceramonial act and would recommend you speak with a mortgage broker.

[simon]

Ok, Thank you for your help.