Mortgage / Remortgage BTL - Query

alienuk

Property 1 is where I currently live.

First time buyer , Mortgage product ending its term in 4 months. 

LTV remaining 82% 

Property 2 is my prospective property where I will move for good but it is not going to be available for the next 6 months (expected date of handover Sept / Oct 2021)

I have applied mortgage for property 2 and the application is in progress. - 15% deposit , pitched for 10% but given the circumstances, no banks are allowing this. 

The aspiration is to go BTL on Property 1  (first time landlord) and Live in Property 2 when it becomes available

Questions - 

1. Can I possibly get 80% remortgage buy to let on property 1? This is to overcome out of pocket deposit to bring the LTV down to 75%. 
2. Do you expect banks to accept 10% on deposit for property 2 (this is a new build property) when lockdown restrictions are lifted in the next few months? 
3. What will be the expected Interest rate for BTL on Property 1?

I know there are several ways to manage this , but I am here to find out if there are any smarter ways to do this? 

Ideally I like to keep my out of pocket expenses to be low so after I settle in the new property, I can rework on my finances to manage this better. 

Thanks in advance 

K_S

@alienuk

1. Assuming you're a first time landlord, at 80% you're probably restricted to a handful of lenders like Foundation, Kensington, etc but they may not offer consumer BTL (because you have lived in the property) or let to buy. Overall, I would expect this to be a bit of a struggle. And all this is before assessing whether the numbers stack up.

2. Afaik, Barclays already does consider 90% LTV on new build houses. I expect more mainstream lenders to return to the space once high LTV lending is somewhat back to normal.

3. For 80% LTV rates, have a look at lender websites for those mentioned in 1.

alienuk

@K_S Thanks. 
sub question - For Property 1 has only 4 months left on the product. Should I wait for market to open up and then perhaps do a resurvey of the property assuming that property price has gone up and then make an informed decision? 
In general, I would like to know the ways to challenge the banks with the 'improved' appreciated property price 

Thrugelmir

alienuk said:

In general, I would like to know the ways to challenge the banks with the 'improved' appreciated property price 

If you dispute the desk top valuation. Ask if you can pay for a formal valuation to be conducted. Will cost you to do so. BTL valuations do differ to residential. As other factors have to be considered.