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first time land lords mortage LTV
sam2015_2
Posts: 196 Forumite
What does the 'First time landlord' mean when it comes to Buy to Let mortgages?
I have been told that you can only get 75%LTV buy to let mortgage when you buy a buy to let property first time. Should be able to get a 80%LTV when you re-mortgaging the BTL after couples years or buying the second buy to let property.
I saw 80% LTV buy to let mortgages for first time landlords with reasonable(3.5 - 4.5%) interest rate online. what do the lender mean by the first time landlord here? I saw one in TMW with 3.99% interest rate.
I have been told that you can only get 75%LTV buy to let mortgage when you buy a buy to let property first time. Should be able to get a 80%LTV when you re-mortgaging the BTL after couples years or buying the second buy to let property.
I saw 80% LTV buy to let mortgages for first time landlords with reasonable(3.5 - 4.5%) interest rate online. what do the lender mean by the first time landlord here? I saw one in TMW with 3.99% interest rate.
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We're currently in the process of getting boyfriends house moved to a BTL to release equity as a deposit on a residential mortgage.
As this is boyfriend's first time on a BTL he is considered a 'first time' landlord. This will not be the case when he remortgages in the future. We (well, he) is going with TMW and got the valuation done yesterday.0 -
It means what it says.
BTL lenders like applicants to own a property and ideally their own home. If they didn't take first time landlords they would lose a lot of business.
If you are buying property as investment, work on 25% deposit. Otherwise you wont like the criteria and you wont like the rates.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
flosswoss21 wrote: »We're currently in the process of getting boyfriends house moved to a BTL to release equity as a deposit on a residential mortgage.
As this is boyfriend's first time on a BTL he is considered a 'first time' landlord. This will not be the case when he remortgages in the future. We (well, he) is going with TMW and got the valuation done yesterday.
What is the LTV mortgage he is getting? Is he going for the 80%LTV to get maximum equity out of the property?
When did he apply for the mortgage? My friend send his application on the 27thMay still hasn't heard from the valuation people. Did they come around to the property for valuation?0 -
Which, FWIW, is actually a "let to buy."flosswoss21 wrote: »We're currently in the process of getting boyfriends house moved to a BTL to release equity as a deposit on a residential mortgage
That's more about the residential mortgage you want for the onward purchase though.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
What is the LTV mortgage he is getting? Is he going for the 80%LTV to get maximum equity out of the property?
When did he apply for the mortgage? My friend send his application on the 27thMay still hasn't heard from the valuation people. Did they come around to the property for valuation?
We have had to go for 75%LTV - was part of the application. Apparently TMW would only accept 75% for a first time landlord.
Applied on 22nd May for the mortgage, and got a call last Thursday about them coming to the house yesterday. Father-in-law met them and took them into the house while we were at work. Called our mortgage broker today to enquire how long we can expect to hear back and she's the one who advised a week for the underwriting. We had an EA valuation done two months ago and they ranged from £355 to £395 and we have based our possible equity on £375 - if it's over, that's a bonus! That would give us a LTV on the residential property of about 83% so a bit of leeway if it's more or less than that.
Kingstreet - thanks for clarifying. I've got so many things buzzing around in the head with mortgages, buying etc!0 -
Does it goes to underwriters after the valuation?
TMW told my friend today that his application is with underwriters and the valuation has been instructed. No one called or come around so far for valuation.
Did you get a copy of the valuation report. I guess they'd send a copy as they charge(£450?....) for valuation.0 -
kingstreet wrote: »Which, FWIW, is actually a "let to buy."
That's more about the residential mortgage you want for the onward purchase though.
Oh! I see.
Doesn't the mortgage product same for 'buy to let' and 'let to buy' ?
Is let to buy have more advantage when it comes to getting a mortgage than buy to let?0 -
The mortgage valuation was only carried out yesterday so not sure if we will get a copy of the valuation. I would guess that we have been accepted on principle and then the underwriters will go through on more detail, e.g. Making sure LTV is correct, re confirming affordability etc.0
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When I say accepted on principle I mean we already have the AIP and when the full application was submitted somebody would have looked over it before getting a valuation approved0
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