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Unable to get BTL Agreement in Principle
five_o
Posts: 18 Forumite
I was looking to take out a 5 year BTL mortgage at 75% LTV. I called Barclays this morning and whilst they were willing to allow me to remortgage to 75% LTV they said that they don't provide agreements in principle for BTL mortgages, only for residential mortgages. The lady I spoke to couldn't explain the reasons for this.
Has anyone else experienced this? Estate Agents always want to see agreements in principle before they accept offers.
Has anyone else experienced this? Estate Agents always want to see agreements in principle before they accept offers.
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Comments
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Are you trying to do a let to buy?
Are you remortgaging your current home to let it and buying a new residence?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.1 -
You can always do AIP/DIP online with any of the high street lenders. Most of them are soft checks so wont have any detrimental impact for your credit footprints.five_o said:I was looking to take out a 5 year BTL mortgage at 75% LTV. I called Barclays this morning and whilst they were willing to allow me to remortgage to 75% LTV they said that they don't provide agreements in principle for BTL mortgages, only for residential mortgages. The lady I spoke to couldn't explain the reasons for this.
Has anyone else experienced this? Estate Agents always want to see agreements in principle before they accept offers.
Do be aware, a few of them DO DO hard search, so read the small prints before you do the AIP yourself online.0 -
Unfortunately most lenders don't do aips as such on btl's, most agents understand this, and if necessary will call the broker for reassurance. Btl's are generally only based on value and expected rental income, provided there is no adverse credit.I am a mortgage adviser.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.1
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Actually yes. I have 2 flats that I let out. I live in a 3rd flat. They are all unencumbered. I was planning to remortgage all of them (interest only) to 60% LTV and then buy a house outright with the released equity.kingstreet said:Are you trying to do a let to buy?
Are you remortgaging your current home to let it and buying a new residence?0 -
It is correct that lenders do not usually provide AIP/DIP for BTL properties. When I last offered to a BTL property recently, all I did was to do my AIP/DIP online based solely on my salary income - which is residential, provide that to the EA after offer had been accepted. Also exhibited my deposit in savings to EA.
As BTL criteria is mainly based on rent income then personal income, getting a AIP/DIP for personal would suffice EA requirement if they do not believe in BTL issues. Plus also BTL personal income requirement is usually £25K.
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I was coming up against the same problem when buying a BTL, my MB got me a BTL AIP from Accord. She used another lender for the actual application.0
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