Let to Buy / Buy to Let question

Vegeta

Which lenders give out a let to buy / buy to let mortgage at the payrate of the mortgage i.e 4% and not a notional rate of 5%/6%?


I know it's quite common for lenders to stress test a loan at 125% of the monthly payments of the loan and also at 5% interest.


Thanks.

Thrugelmir

Vegeta wrote: »

I know it's quite common for lenders to stress test a loan at 125% of the monthly payments of the loan and also at 5% interest.


Thanks.

A pretty basic check for all lenders. More likely the interest will be at 6% or 7% stress testing level.

Vegeta

Are there any buy-to-let lenders that allow this mortgage to be used to re-mortgage your current home to raise capital and use that as a deposit on a new house purchase?


I'm basically looking at a lender that would have a BTL SVR of 4% ~ 4.5% and allows BTL mortgage to be used as a LTB.


I noticed RBS have a BTL SVR of 4% but I don't know if they allow this mortgage to be used as LTB.


Any advice would be appreciated.


Thanks.

ACG

The notional rate is to cover void periods/rate rises etc.

I dont know of any buy to let lenders who would do it on a 4.5% rate. The lowest I have seen is 5% but for the life of me I can not think who that was with.

Let to buy may be slightly different, but its not something I have done a lot of, so couldnt say for sure. Although you are aware the 6% is based on interest only (with a lot of lenders thats regardless of whether you have it on repayment or not).

If your struggling to get it to fit on interest only at 5% then I think this will be a property you end up subsidising.

Vegeta

I could manage it at 5%. In your experience, are there many BTL/LTB lenders out there with a 5% notional rate or are there very few and they have high fees?