New business BTL Mortgage

dipsldn

Hello everyone, i am purchasing a property share of freehold in london 1 bed flat. Its 260k and im getting a mortgage of 75% LTV 194k and the 66k 25% deposit. My parents had promised to give me majority of this but have now turned around and cannot give me as much. I am short around 20k. Do you know how i can get the money for this ? i will start the mortgage application this, so probably have 2 months before money needs to be exchanged. 

Lastly, im also worried i wont be accepted by the lender, i checked my credit score and its 550/750 which i dont think is good. will this be enough ? any help is appreciated. thank you

Caz3121

do you have sufficient equity in your residential property to release funds with additional borrowing?

dipsldn

Caz3121 said:

do you have sufficient equity in your residential property to release funds with additional borrowing?

Hi, im a first time buyer

jimjames

dipsldn said:

Caz3121 said:

do you have sufficient equity in your residential property to release funds with additional borrowing?

Hi, im a first time buyer

In which case your option is to save more or borrow more. Borrowing more might be possible for a BTL but will likely be limited by the rent and will increase the rate you pay which might make the BTL unviable.

Is there a reason you're buying a BTL before getting your own place?

dipsldn

jimjames said:

dipsldn said:

Caz3121 said:

do you have sufficient equity in your residential property to release funds with additional borrowing?

Hi, im a first time buyer

In which case your option is to save more or borrow more. Borrowing more might be possible for a BTL but will likely be limited by the rent and will increase the rate you pay which might make the BTL unviable.

Is there a reason you're buying a BTL before getting your own place?

It's actually because my dad rents a property and i'm planning to purchase this through my company then rent it to him and his girlfriend. He's happy to help me with the mortgage payments as he will be living there

Edi81

You need a regulated BTL mortgage. 

Hope you have a broker. 

housebuyer143

As above, regulated BTL is what you need and they are few and far between.

MWT

dipsldn said:

jimjames said:

dipsldn said:

Caz3121 said:

do you have sufficient equity in your residential property to release funds with additional borrowing?

Hi, im a first time buyer

In which case your option is to save more or borrow more. Borrowing more might be possible for a BTL but will likely be limited by the rent and will increase the rate you pay which might make the BTL unviable.

Is there a reason you're buying a BTL before getting your own place?

It's actually because my dad rents a property and i'm planning to purchase this through my company then rent it to him and his girlfriend. He's happy to help me with the mortgage payments as he will be living there

You are going to struggle with this one, too many red flags, no property of your own, gifted deposit and planning to rent to close family, and less than 18% deposit available...

You are going to need a good broker, but the answer may well be 'no'.

dipsldn

Hi thank you everyone. My broker had two potential options with really high rates. That was willing to accept my criteria. first time buyer, gifted deposit etc. But i didnt mention i will rent it to my parents, will this cause any problems down the line? 

MWT

dipsldn said:

..but i didnt mention i will rent it to my parents, will this cause any problems down the line? 

Yes, it will invalidate the mortgage completely.

You need a regulated BTL mortgage, it is imperative that you tell your broker immediately about the plan to rent to close family as you are wasting their time right now heading down the wrong path...

dipsldn

 MWT said:

dipsldn said:

..but i didnt mention i will rent it to my parents, will this cause any problems down the line? 

Yes, it will invalidate the mortgage completely.

You need a regulated BTL mortgage, it is imperative that you tell your broker immediately about the plan to rent to close family as you are wasting their time right now heading down the wrong path...

Hi thank you, i know its a silly question but arent they all regulated? and is there a reason for this? in case the market crashes or what? Also, will anyone be checking on the property as to who lives in there and once i purchase it, what generally happens after that? do i need to get an estate agent to manage it or can i just get my family in ?