Adverse buy to let

Jam555s

Hi there, does anyone here know of any companies that do adverse, or near prime, buy to let mortgages, I have 4 satisfied defaults, that are nearly 5 years old, and will drop off within a year and a bit, I have a 25% deposit, and I have my own mortgage, which is paid always on time, in fact the rest of my credit file is perfect apart from the info above, please please help,


Thanks

dunstonh

If you have a poor credit history, why are you entering into a high risk investment transaction just as the bubble is reversing?

Jam555s

the bubble hasnt burst where i am (scotland) and i think the house is a great buy, please someone help

inmypocketnottheirs

Go and see a whole of market broker. They will be falling over them selves to help you.

Gloster_Advise

Hi Jam555s,

Not searched the market in full, just an idea, but Platfrom will do a near prime 3 yr fix at 8.74%.

You either need to be lucky and find a lender who will fast track you through due to the LTV or take it on the chin and go to a non conforming lender.

Regards
Si

toonfish

it would be madness to take on a buy to let at 8.74% and Scotland is apparently suffering the most from price drops - we have had 2 recent purchases there downvalued by the surveyor.

I would visit a broker and I suspect you might be able to get a mainstream deal if you really want to go ahead - it depends on the reason fo rthe defaults and other credit score information.

herbiesjp

Depending on the defaults and amounts, there may be some lenders that will offer you prime deals - seeing as they are nearly 5 years old.

Get a copy of your up to date credit file and discuss with a whole of market mortgage adviser

Edit: Sorry Toon - just saw your post says pretty much the same

Gloster_Advise

Herbies and toon,

Just gave a rate that was all!!!

Quite right, if the adverse is small and old "some" lenders will let it through.

Regards
Si

luckyfool

toonfish wrote: »

it would be madness to take on a buy to let at 8.74% and Scotland is apparently suffering the most from price drops - we have had 2 recent purchases there downvalued by the surveyor.

Toonfish - I don't think that is backed up by the house price indexes, in general house prices have held up better in Scotland than in most other areas of the UK. I believe the areas worst effected are the ones which had the craziest price appreciation before such as Northern Ireland.

dunstonh

With most rental yields around the 5% mark, taking on borrowing at a rate in excess of that in a falling market means you are basically paying the tenant to live in your house.

Its fairly simple, rental yield around 5%. Mortgage cost 8.74%. and thats before costs.

Conrad

Classic case of people just not having a clue about investment. Sorry mate, your not alone in this error.

Add up these costs:

Buying costs
Cost of your deposit (ie - lost interest you will suffer by taking it out of the Bank and dont forget to compound the interest)
Capital gains tax at say 25% in 20 years time

Regular maintenance (a big cost often over looked) -rats, new TV aerial, paint and decor, carpets, gardens, all sorts of other bits such as new bouiler at some point

Annual Accountants charges
Bank charges

Letting agents
Mortgage cost (I bet this will be as much as the rent)

Time off work to sort problems / fix up

Forget these property programmes on TV, they really are for thickies. The costs are never fully allowed for.

I would'nt buy unless your yield is at least 8%