BTL Mortgages

saveruk_2

Can anyone recommend a BTL product with a 15% or 20% deposit?


Are BTL mortgages available on leasehold properties?


Thanks in advance

lucie_1985

As far as I understood you need at least 25% deposit for any buy to let

Socksey

The Mortgage Works with 20%... you may need a broker and there is a large fee for this one...

Please note....I'm not reccomending this... just saying it exists... it's the one I've got myself... TMW are part of the Nationwide Group...

Mortgage_Mark_2

There are options depending on property and circumstances at 15% but no broker can recommend anything just from a forum post, so you won't find a broker naming names on here, sorry.

EDIT: And yes to Leasehold.

amnblog

Socksey wrote: »

The Mortgage Works with 20%... you may need a broker and there is a large fee for this one...

yes you do, and no there isn't.

amnblog

Mortgage_Mark wrote: »

There are options depending on property and circumstances at 15% but no broker can recommend anything just from a forum post, so you won't find a broker naming names on here, sorry.

EDIT: And yes to Leasehold.

Mark is correct.


Often the figures do not fit for +75% lending - a broker will help you negotiate this..

saveruk_2

amnblog wrote: »

Mark is correct.


Often the figures do not fit for +75% lending - a broker will help you negotiate this..

Thanks.


I used a Broker for my residential mortgages but had a really bad service last time with a local Broker so I need to shop around this time (any idea how?!).


I'm hoping to lend £64k mortgage + £16k deposit for for an £80k house. Rent will be roughly £500ppm.


Ive also seen a leasehold apartment for £65k to rent out for £400pm.


Thanks again

Socksey

amnblog wrote: »

yes you do, and no there isn't.

There is... I'm paying a fee of around £1300 for it... unless it's changed since my offer came through...

amnblog

Socksey wrote: »

There is... I'm paying a fee of around £1300 for it... unless it's changed since my offer came through...

It's perception then.


A £1,300 is modest in the BTL market.

Socksey

LOL... true... it would be higher on a larger mortgage.... for me on a £52k loan, I think it's high... but it still makes the figures workable for me and each situation is different.... I would not normally have gone for sure a bad deal as I was saving for a larger deposit but a wee house came up that I really liked and considered a good long term investment and have a tenant lined up for as soon as it completes... and will be getting a return of almost 10%, which for me makes it worth while.... (also I have a number of other BTLs so it's not my first time and I'm going in with my eyes open)
OP - If you are looking to BTL with only 15% deposit, you need to have contingency plans as chances are you may not have much of a buffer if you don't get a tenant in quickly or if anything comes up ... e.g. after 10 years one of my flats needs new double glazing throughout and it's going to cost about £3k to do.... I've another which I have about 15 years and will need a new kitchen soon... they are good flats which attract good tenants but to keep doing so the flat needs to be a pleasant place for them to live in and so you need to reinvest periodically (if, like me, these will provide the bulk of your pension on retirement.... so in my case, all my BTLs are repayment mortgages as I want them all paid off when I retire so that I can either use the income then or if I need a larger sum at that point they can be sold..... in the meantime, I need to be careful that I don't overextend myself so that they effectively pay for themselves)...
Good luck and definitely talk to a good broker... they are worth their weight in gold...

saveruk_2

Socksey wrote: »

LOL... true... it would be higher on a larger mortgage.... for me on a £52k loan, I think it's high... but it still makes the figures workable for me and each situation is different.... I would not normally have gone for sure a bad deal as I was saving for a larger deposit but a wee house came up that I really liked and considered a good long term investment and have a tenant lined up for as soon as it completes... and will be getting a return of almost 10%, which for me makes it worth while.... (also I have a number of other BTLs so it's not my first time and I'm going in with my eyes open)
OP - If you are looking to BTL with only 15% deposit, you need to have contingency plans as chances are you may not have much of a buffer if you don't get a tenant in quickly or if anything comes up ... e.g. after 10 years one of my flats needs new double glazing throughout and it's going to cost about £3k to do.... I've another which I have about 15 years and will need a new kitchen soon... they are good flats which attract good tenants but to keep doing so the flat needs to be a pleasant place for them to live in and so you need to reinvest periodically (if, like me, these will provide the bulk of your pension on retirement.... so in my case, all my BTLs are repayment mortgages as I want them all paid off when I retire so that I can either use the income then or if I need a larger sum at that point they can be sold..... in the meantime, I need to be careful that I don't overextend myself so that they effectively pay for themselves)...
Good luck and definitely talk to a good broker... they are worth their weight in gold...

Thanks for your advice. Where do I even begin looking for a good broker? As the last 2 I used were rubbish and actually 'lost' us money (long story). None of my friends/family have used a broker either so I have no recommendations..