Buy to let mortgage for family?

somethingcorporate

Thanks for reading.

We are looking to buy a b2l property for my sister and her husband and daughter to live in. We chatted to a broker this morning who said there is only 1 lender who considers regulated b2ls at the moment and talking through the criteria the rental requirement was far too high (being 7.5% of the amount borrowed, which at a 75% l2v is incredibly high).

Does anyone know of any alternatives or other possibilities whereby we can do this? It seems odd to me that the criteria are significantly more difficult than a straight forward b2l.

Thanks for your help.

:j

amnblog

Putting your family in the property makes it a regulated deal which brings overall affordability in to the equation.

silvercar

Can you get the mortgage on the basis of a standard BTL?

That would give you more options, including renting it to strangers.

somethingcorporate

We could do but we only want to rent it to family so guessing with that being the intention it is kind of breaking the rules?

Overall affordability isn't the problem, the rediculous rent stipulation is. It should be one or the other, not both (in my humble opinion!).

silvercar

There was another thread on here recently discussing what counts as a relative. It was arguing from the opposite view, as to whether a gift from a step in-law could count as a relative.

From your point of view, your partner renting to a sister-in-laws husband is what, an in-laws once removed? Are you married to your partner because if not, your sister in law is not a relative of your partner.