Buy to let

julybride

My husband has had to move away with work and i want to join him as soon as possible; we don't want to loose our one bed home in Essex as it is in a good area and we would struggle to affoard to get back. The house is now being rented. Our current mortgage lender agreed this. Our fixed term is up and we want to release capital to buy a new home.

We are struggling to find a lender that will go up past 85% on the buy to let mortgage to raise the 10% deposit on the next house. So we then end up with a 5 % deposit on the new house and higher lending charges which almost cancel out the deposit!!!! any suggestions? or alternative ways of mortgaging. We are financially secure have always over paid our mortgage and have spent 6 months paying a mortgage and renting; we can affoard this but don't want to be stung on interest rates either. Am i just asking too much? 2 borokers have discussed good deals with us then when the paper work has come through its been for a completely different mortgage not to the specs we asked for. I'd rather pay a highter interest rate for a few years than get charged.

any helpgreatfully recieved

Ian_W

I'm no expert, and hopefully one will be along soon, but when I've looked at BTL's 85% LTV seems to be the best it gets.
Just a thought, if you can find a non-mainstream one that goes higher, its going to be more fees or higher rates at that end of the deal. So overall it may not work out cheaper.

herbiesjp

You can get 87% deals and 89% deals on BTLs also - however as you say, it depends on the specs that you are asking for as to whether they will be suitable

julybride

Thank you,

Herbiesjp, i have found one at 87%. Are the ones at 89% looking at needing higher multiples of rental income? I actually haven't found these?

herbiesjp

What figures are you looking at? I.e property value, mortgage needed, expected rental income for the property?

julybride

Value house £142500 would like to raise my mortgage to £125000 our rental income is £625 on the current house.

to place a £11000 deposit on a £111000 house
our salary income is just under 48k

if this helps

herbiesjp

will send you a pm