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Buy to let
Steer100
Posts: 66 Forumite
Hi there,
I'm looking for some advice...
I live at home with my parents so have little outgoings and have saved £25,000 to invest. Last year I earned £30k but this will be increasing slightly now.
I am an estate agent and know that from a house in my area worth £175,000, I would be able to find a tenant very very easily for (absolute worst case figure) £825 per month. On a normal mortgage, the rent would cover the repayments.
My problem is that buy to let mortgages ask for a much higher deposit. I'm not asking anyone to do the work for me and find me the best deal, just to see really if anyone had any useful advise for me? Even if it was to laugh at me and tell me there is no way of being able to get a BTL mortgage on such a small deposit.
It's just being an estate agent and therefore knowing the market well, local tradesmen, solicitors, having to pay no property management fee's etc etc - I'm desperate to make this work.
Honestly any help would be so greatly appreciated,
Tom
I'm looking for some advice...
I live at home with my parents so have little outgoings and have saved £25,000 to invest. Last year I earned £30k but this will be increasing slightly now.
I am an estate agent and know that from a house in my area worth £175,000, I would be able to find a tenant very very easily for (absolute worst case figure) £825 per month. On a normal mortgage, the rent would cover the repayments.
My problem is that buy to let mortgages ask for a much higher deposit. I'm not asking anyone to do the work for me and find me the best deal, just to see really if anyone had any useful advise for me? Even if it was to laugh at me and tell me there is no way of being able to get a BTL mortgage on such a small deposit.
It's just being an estate agent and therefore knowing the market well, local tradesmen, solicitors, having to pay no property management fee's etc etc - I'm desperate to make this work.
Honestly any help would be so greatly appreciated,
Tom
0
Comments
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isnt there an in house broker you always recommend to your clients that you could use?0
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TBeckett100 wrote: »isnt there an in house broker you always recommend to your clients that you could use?
Thanks for your reply, we actually only did lettings up until about 18 months ago so don't recommend anyone. I deal much more with the lettings so I guess I'll speak with my boss tomorrow to ask his view.0 -
Your problem will be that there are very few mortgage lenders that will lend on a BTL basis to someone that is renting themselves.
Reason being that people often use this as a way to secure a mortgage when they have a deposit but are low on income, as BTL mortgages are based on rental income.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Most BTL lenders want;-
owner occupiers with or without a mortgage
rent to be at least 125% of mortgage interest assuming 6%pa
deposit of at least 25%.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 -
Here are some 80% LTV BTLs, but the rates look somewhat higher than average.
http://www.money.co.uk/mortgages/80-buy-to-let-mortgages.htm0
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