buy to let

saff_2

Hi i was wondering if someone can pint point me in the right direction. i am looking for a buy to let morthgage with the minimum deposit to be put down, and with a low intrest rate of between 4-5%.

Another question if i was to buy a property on a residiantial mortgage, and if i was to let it out without the approval or permission of the lender. Would could the banks do if they found out? and after purchasing a residiantial property on mortgage is it easy to tranfer it to a buy to let (with another lender) as my bank does not do buy to lets....thx

thaylock

If you were to buy a property on a residential mortgage & your lender found out they will probably increase your interest rate.

Try http://www.themoneycentre.net or http://www.moneysupermarket.com.

Personally I would wait 2-3 years before purchasing a property, I currently own 3 properties & am itching to buy another, but house prices are dropping & I think houses will be about 20% cheaper in 2-3 years time (this is only my opinion), those with Vested Interests (Estate agents) will of course tell you different, but asking an estate agent about house prices is a bit like asking a farmer about the benefits of BSE - pointless discussion.

nrsql

Under 5% for 80-85% buy to let is quite common - do a search.
The provider might be more concerned about the rental income covering the payments (135% ish is common).

As to letting out without permission - if they found out they probably wouldn't do anything if you were keeping up payments but it's taking a chance. They could probably claim back interest - 1% is a common difference. They could maybe put a mark on your credit report. You would be contravening the terms of the mortgage so they could maybe ask for it to be paid back and claim the property if you didn't - can't see that happening though.

Transferring from residention to buy to let is just like transferring residential mortgages. Usually providers will allow you to stay on a residential mortgage for a short time as long as you don't buy another place. I've done this twice - once when I worked in the USA and at the moment while I try renting the house out while I rent a flat.

Bazdaa

How did you work out the 20% drop in 2-3 years Thaylock?

I also own 3 properties, and expect the market to stabalise or take a slight drop with an absolute maximum of 10% with the next 3 years, but 20%!! thats 40 grand for a small home.

Bazdaa