Minimum borrowing amount for buy to let mortgages.

Brodiebobs

We have seen a property we're interested in which is listed for offers over £65,000,agent reckons we will be able to secure for under £70,000.

We'd had a brief chat with our broker previously about potentially getting another BTL mortgage and she made all the right noises said with a 15% deposit there were plenty of lenders, just said go back when we had a property we were interested in.

We wanted something concrete before we thought about making an offer so sent all the info she needed and shes now come back saying with only a 15% deposit the minimum lending amount from her panel of providers is £75,000.

Is anyone aware of a lender who will offer a BTL mortgage for sub £60,000 with a 15% deposit?

YHM

85% LTV for a BTL purchase is not the standard and there's only a few lenders that play in that ballpark, so the fact they are picky with property value and mortgage size is understandable.

ACG

I only know of 2 lenders and they are both the same lender once you drill down who would lend at 85%. I could be wrong but I do not think they would lend 85% on a £70k property.

There are definitely not "plenty" of lenders at 85% on a BTL.

Brodiebobs

Ok so 75% lending is all we would be open to at that level of borrowing?

I just wish she'd have explained that first, perhaps she assumed we would be borrowing a lot more!

ACG

Not necessarily, there might be 80%.
BTLs are not really my thing so I could be wrong, but I think 85% is probably unlikely.

amnblog

15% deposit, no.

20% deposit about half a dozen lenders but at that price the property may be an issue in itself.

Brodiebobs

amnblog wrote: »

15% deposit, no.

20% deposit about half a dozen lenders but at that price the property may be an issue in itself.

What do you mean by this? The value of the property or the property itself?

Barring what a survey says it's in good state we just live in a cheap area, lots of properties for sale for around that price here.

amnblog

Lenders can decide not to accept a property as security if it has limited marketing potential.

Brodiebobs

amnblog wrote: »

Lenders can decide not to accept a property as security if it has limited marketing potential.

How would they determine this at survey stage?

YHM

Broadbrush approach. If its cheap, they will make a judgement on it.

Brodiebobs

So what would you recommend in this circumstance walk away, try pull together 25% deposit (not looking likely) or approach another broker who can access a 80% provider and apply knowing they might survey and decline because of value?