BTL Mortgage advice please

Nesty

Looking for a bit of advice on Buy to let mortgages.


I currently let my house out been rented since 2013. I am on a residential mortgage with lenders (Santender) consent.



However when my discounted period elapsed. My lender would not entertain any new deal, not even a buy to let. They put me on standard viable at 4.7%.


I’ve been on this deal for about a year now. I would like to transfer the product to another lender, as I reckon could get a lower % deal. I have low LTV (30-35%). The rental income covers the current mortgage payments by more then 100% (taking into account I am pay 4.7%) with Santender.


Also I don’t even think I am charging my tenant full market value, I never put the rent up as been an excellent tenant.


I have looked on various buy to let options of the banks online etc. It seems to be set criteria towards people buying first time and must have £30,000 in earnings & prospective rental income of more than 100% of mortgage payment .


My usual wages are low, so could see this as potential problem? However, if I could prove low LTV and long period of rental income. Would I be a viable option for a buy to let transfer to another lender?


Never really looked into this before so new waters!

Poppy9

I have BTL mortgage with Principality. We have a LTV of 20%. We had a fixed rate deal with them for 2 years and just before it ended we spoke to them and had a new deal which was lower than I could find with other banks. The deal we had wasn't available online with Principality.

I'm sure some mortgage advisors will come along with better advice though!

ACG

A lot of BTL lenders want an income of £20-25k. Not all will want this.
A lot of lenders will go off the curent rent received and it needs to be 125% of the monthly repayment on a nominal rate (around 6%) on interest only (not repayment), but some lenders will use the open market rate.

Speak to a broker, im sure there will be options. I would try and get this done before March if you can as there are some changes coming into effect then or possibly sooner that may make life a little more difficult for you.

amnblog

Poppy9 wrote: »

I have BTL mortgage with Principality. We have a LTV of 20%. We had a fixed rate deal with them for 2 years and just before it ended we spoke to them and had a new deal which was lower than I could find with other banks. The deal we had wasn't available online with Principality.

I'm sure some mortgage advisors will come along with better advice though!

Principality require a BTL applicant to have a personal income of £20,000. Our OP is best set consulting a broker as ACG says.

Poppy9

amnblog wrote: »

Principality require a BTL applicant to have a personal income of £20,000. Our OP is best set consulting a broker as ACG says.

The OP didn't mention what their earnings were, just said low but that's open to interpretation and stated that that she thought you needed £30k in earnings.

Nesty

Ok many thanks for the replies. Will talk to a broker in new year.