Buy to let minimum

HappyMJ

I'd be looking at a personal loan...or remortgaging another property to release the funds to buy this one outright with no mortgage.

Dogz111

You can buy with either Natwest or HSBC BTL Mortgages

Both require 25% deposit. Natwest has £0 fees and HSBC £99 if you go for the low fee option. Both will lend on the valuations you are talking about on a house - I'm not sure on a flat so you would need to ring them up to check

Hope this helps

marsman802

A flat for under £50k????????

That is crazy........

Thrugelmir

HSBC Criteria

Borrower Eligibility
Our Buy to let mortgages are available to:
HSBC Premier customers, or
HSBC current account customers providing you meet all of the points below:
you hold a HSBC current account, into which your salary has been paid, for at least 3 months; and
if you are a sole applicant, you have an annual salary of at least £50,000 and if you are joint applicants, you have a combined annual salary of at least £75,000 or one party has an individual salary of £50,000 or more.
Buy to let mortgage eligibility criteria
The property must be in the UK and we require the first legal charge over the property.
The maximum loan to valuation (LTV) is 75% i.e. a deposit of 25% of the property purchase price or property valuation (whichever is lower) is needed.
A Standard Valuation Report is required for all applications.
Properties must be let under Assured Shorthold Tenancies (ASTs) or let for business purposes.
The minimum loan amount is £25,000 per Buy to let mortgage.
The maximum loan amount is £500,000 per Buy to let mortgage (whether single or joint applicants).
The maximum mortgage term is 25 years.
All mortgages are subject to underwriting and lending criteria.
Terms and conditions apply.
Please note: You will be allowed to take out up to 5 Buy to let mortgages with HSBC Bank plc or, we may be able to provide you with lending for up to 10 Buy to let mortgages, provided they generate less than 50% of your gross annual income.
The combined loan amount for all Buy to let mortgages held with HSBC Bank plc must not exceed £1,000,000.
Affordability
The affordability of a Buy to let mortgage can be assessed from either rental income and/or salaried income.
Rental income
If you intend to pay your Buy to Let mortgage payments from the property's rental income, the rent must be at least 130% of the mortgage payments. For example, if the monthly payment is £100 (100%), the monthly rental income must be at least £130 (130%). To assess how much you can afford to borrow, a Rental Income affordability assessment is carried out. We will also undertake a broader review of your financial circumstances, which is in addition to the rental cover requirement.
Salaried income
If you intend to pay your Buy to Let mortgage payments from your salaried income, we will assess your mortgage application taking into consideration any associated bills for the Buy to let property in addition to your other monthly financial commitments, for example residential mortgage payments, utility bills etc.

Owain_Moneysaver

marsman802 wrote: »

A flat for under £50k????????

That is crazy........

No, it's perfectly sensible in many places outside The South.

And they can produce good rental yields of 10%+ gross.

marsman802

Owain_Moneysaver wrote: »

No, it's perfectly sensible in many places outside The South.

And they can produce good rental yields of 10%+ gross.

Right I need to get me one of those or at least look into it.
I honestly had no idea...!

Owain_Moneysaver

marsman802 wrote: »

Right I need to get me one of those or at least look into it.
I honestly had no idea...!

Studio Flat for sale in Livingston £47,000
Studio Flat to rent in Livingston £395 pcm

((395 * 12) / 47 000) * 100 = 10 % gross return on investment (maximum theoretical, assuming no voids)

1 bedroom flat for sale in Winchburgh £45,000

1 bedroom semi in Winchburgh to rent £450 pcm

((450 * 12) / 45 000) * 100 = 12% gross return on investment (maximum theoretical, assuming no voids)

Go to scabby areas you can buy cheaper flats than those and let to people on benefits.

regprentice

And winchburgh is actually quite nice! (Its a small village 14 miles outside edinburgh)