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Buy to let minimum

1peckham
1peckham Posts: 4 Newbie
in Mortgages & endowments
Im looking to get my first Buy to Let mortgage but all the lenders insist on a minimum £40k mortgage, or the few who will borrow under this amount charge massive arrangement fees.

Can anyone recommend a lender that will offer Buy to Let mortgages for properties under £40k and no arrangement fee or offers cash back. I have a deposit of £10k so can't see where the risk is.

Thanks
«1

Comments

  • ACG
    ACG Posts: 24,897 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    There is no money in a £40k mortgage for any lender.

    So they either have to up their fees or up the rate.

    The risk is that a £50k property has no huge resale value, so if you were to stop paying the mortgage and they had to sell at a reduced price to get rid of it they could easily lose money.
    I am a Mortgage Adviser
    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.
  • 1peckham
    1peckham Posts: 4 Newbie
    With a massive 9k or 10k deposit surely this nullifies any risk?
    Thank for quick response
  • Bantex_2
    Bantex_2 Posts: 3,317 Forumite
    Is this property less than £40k
  • ACG
    ACG Posts: 24,897 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    I dont mean this in a rude way but £9-10k isnt massive.

    Infact, its 20%. Most BTL lenders want to see a minimum 25% deposit. So your 20% is actually low by comparison of what most lenders want to see.
    I am a Mortgage Adviser
    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.
  • 1peckham
    1peckham Posts: 4 Newbie
    Yes, I'm looking at flats about 30-35k
  • ACG
    ACG Posts: 24,897 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Sorry i appear to have been basing those figures on the wrong purchase price.

    Your not going to get a normal BTL mortgage on a property worth £30-35k. Your going to be looking at hefty set up fees and rates getting on for double digits.
    I am a Mortgage Adviser
    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.
  • ACG
    ACG Posts: 24,897 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    You might be better looking at a personal loan. You can get them up to £25k - depending on your circumstances.
    I am a Mortgage Adviser
    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.
  • 1peckham
    1peckham Posts: 4 Newbie
    Yes it seems Virginmoney are best bet for a £40k buy to let mortgage with a cash back re their arrangement fee.
    Thank for response.
  • ACG
    ACG Posts: 24,897 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Do virgin money have a minimum purchase price?

    Dont forget it will always be subject to valuers comments even if it fits criteria.
    I am a Mortgage Adviser
    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.
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Do you have a minimum income of 25k?

    Is the flat ex local authority?
    I am a Mortgage Adviser
    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.
This discussion has been closed.
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