We'd like to remind Forumites to please avoid political debate on the Forum. This is to keep it a safe and useful space for MoneySaving discussions. Threads that are - or become - political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

buy to let via personal loan or secured BTL?

Hi, hoping someone with more knowledge than myself can give me their opinion for the best way to structure financing a buy to let purchase... Looking to buy a BTL property around £40k (perks of buying in Scotland) via a SPV and trying to find the most cost effective way to do it.

Do i go via a personal loan or am i better looking at secured BTL loans? I can put down 25-30% deposit, property already has tenants (DSS) and rental is more than adequate to cover loan payments from what i can see. Credit rating should be good and my salary is high

any advice from those who have structured BTL financing in similar manner?

Comments

  • amnblog
    amnblog Posts: 12,603 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Getting lending as a SPV is tricky enough, £40,000 properties and DSS are further complications.

    If you get a personal loan how are you going to get the funds in and out of the SPV. Loan or Share capital, which is best?

    You need advice from an Accountant before you do anything else.
    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.
This discussion has been closed.
Meet your Ambassadors

Categories

  • All Categories
  • 347K Banking & Borrowing
  • 251.5K Reduce Debt & Boost Income
  • 451.7K Spending & Discounts
  • 239.3K Work, Benefits & Business
  • 615.1K Mortgages, Homes & Bills
  • 175K Life & Family
  • 252.6K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 15.1K Coronavirus Support Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.