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    • Brodiebobs
    • By Brodiebobs 5th Feb 18, 1:28 PM
    • 771Posts
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    Brodiebobs
    Minimum borrowing amount for buy to let mortgages.
    • #1
    • 5th Feb 18, 1:28 PM
    Minimum borrowing amount for buy to let mortgages. 5th Feb 18 at 1:28 PM
    We have seen a property we're interested in which is listed for offers over 65,000,agent reckons we will be able to secure for under 70,000.

    We'd had a brief chat with our broker previously about potentially getting another BTL mortgage and she made all the right noises said with a 15% deposit there were plenty of lenders, just said go back when we had a property we were interested in.

    We wanted something concrete before we thought about making an offer so sent all the info she needed and shes now come back saying with only a 15% deposit the minimum lending amount from her panel of providers is 75,000.

    Is anyone aware of a lender who will offer a BTL mortgage for sub 60,000 with a 15% deposit?
    Addicted to MSE.
    Overpaying mortgage for a better debt free life!
Page 1
    • YHM
    • By YHM 5th Feb 18, 1:52 PM
    • 506 Posts
    • 189 Thanks
    YHM
    • #2
    • 5th Feb 18, 1:52 PM
    • #2
    • 5th Feb 18, 1:52 PM
    85% LTV for a BTL purchase is not the standard and there's only a few lenders that play in that ballpark, so the fact they are picky with property value and mortgage size is understandable.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, 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
    • ACG
    • By ACG 5th Feb 18, 2:24 PM
    • 16,698 Posts
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    ACG
    • #3
    • 5th Feb 18, 2:24 PM
    • #3
    • 5th Feb 18, 2:24 PM
    I only know of 2 lenders and they are both the same lender once you drill down who would lend at 85%. I could be wrong but I do not think they would lend 85% on a 70k property.

    There are definitely not "plenty" of lenders at 85% on a BTL.
    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.
    • Brodiebobs
    • By Brodiebobs 5th Feb 18, 2:28 PM
    • 771 Posts
    • 3,286 Thanks
    Brodiebobs
    • #4
    • 5th Feb 18, 2:28 PM
    • #4
    • 5th Feb 18, 2:28 PM
    Ok so 75% lending is all we would be open to at that level of borrowing?

    I just wish she'd have explained that first, perhaps she assumed we would be borrowing a lot more!
    Addicted to MSE.
    Overpaying mortgage for a better debt free life!
    • ACG
    • By ACG 5th Feb 18, 2:39 PM
    • 16,698 Posts
    • 8,681 Thanks
    ACG
    • #5
    • 5th Feb 18, 2:39 PM
    • #5
    • 5th Feb 18, 2:39 PM
    Not necessarily, there might be 80%.
    BTLs are not really my thing so I could be wrong, but I think 85% is probably unlikely.
    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.
    • amnblog
    • By amnblog 5th Feb 18, 2:46 PM
    • 10,410 Posts
    • 4,116 Thanks
    amnblog
    • #6
    • 5th Feb 18, 2:46 PM
    • #6
    • 5th Feb 18, 2:46 PM
    15% deposit, no.

    20% deposit about half a dozen lenders but at that price the property may be an issue in itself.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, 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.
    • Brodiebobs
    • By Brodiebobs 5th Feb 18, 3:48 PM
    • 771 Posts
    • 3,286 Thanks
    Brodiebobs
    • #7
    • 5th Feb 18, 3:48 PM
    • #7
    • 5th Feb 18, 3:48 PM
    15% deposit, no.

    20% deposit about half a dozen lenders but at that price the property may be an issue in itself.
    Originally posted by amnblog
    What do you mean by this? The value of the property or the property itself?

    Barring what a survey says it's in good state we just live in a cheap area, lots of properties for sale for around that price here.
    Addicted to MSE.
    Overpaying mortgage for a better debt free life!
    • amnblog
    • By amnblog 5th Feb 18, 3:50 PM
    • 10,410 Posts
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    amnblog
    • #8
    • 5th Feb 18, 3:50 PM
    • #8
    • 5th Feb 18, 3:50 PM
    Lenders can decide not to accept a property as security if it has limited marketing potential.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, 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.
    • Brodiebobs
    • By Brodiebobs 5th Feb 18, 4:12 PM
    • 771 Posts
    • 3,286 Thanks
    Brodiebobs
    • #9
    • 5th Feb 18, 4:12 PM
    • #9
    • 5th Feb 18, 4:12 PM
    Lenders can decide not to accept a property as security if it has limited marketing potential.
    Originally posted by amnblog
    How would they determine this at survey stage?
    Addicted to MSE.
    Overpaying mortgage for a better debt free life!
    • YHM
    • By YHM 5th Feb 18, 4:37 PM
    • 506 Posts
    • 189 Thanks
    YHM
    Broadbrush approach. If its cheap, they will make a judgement on it.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, 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
    • Brodiebobs
    • By Brodiebobs 5th Feb 18, 4:48 PM
    • 771 Posts
    • 3,286 Thanks
    Brodiebobs
    So what would you recommend in this circumstance walk away, try pull together 25% deposit (not looking likely) or approach another broker who can access a 80% provider and apply knowing they might survey and decline because of value?
    Addicted to MSE.
    Overpaying mortgage for a better debt free life!
    • YHM
    • By YHM 5th Feb 18, 4:59 PM
    • 506 Posts
    • 189 Thanks
    YHM
    Completely down to how much you want the property. 80% opens up more options, but a broker wont put full effort into it if you are unsure if you want to proceed or not.
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, 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
    • amnblog
    • By amnblog 5th Feb 18, 5:01 PM
    • 10,410 Posts
    • 4,116 Thanks
    amnblog
    To be frank, if finding an extra 3,500 deposit is a problem you don't want to be taking the risk of a purchase and becoming a landlord.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, 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.
    • Brodiebobs
    • By Brodiebobs 5th Feb 18, 5:21 PM
    • 771 Posts
    • 3,286 Thanks
    Brodiebobs
    It's a catch 22 though as I'd want (and I'm sure agent would expect) us to have a agreement in principle to accept an offer. I'd have to approach another broker a step ours says 25% deposit is all she can source.

    With respect I already have a rental and know what it entails, we have savings in place was just looking for advice about a mortgage. 3,500 is achievable but to get to 25% or an extra 7,500 isn't. Hence my request for advice.
    Addicted to MSE.
    Overpaying mortgage for a better debt free life!
    • Brodiebobs
    • By Brodiebobs 8th Feb 18, 2:14 PM
    • 771 Posts
    • 3,286 Thanks
    Brodiebobs
    For anyone else that's searching we approached another broker who has sourced a provider who's minimum is 60,000 with 20% deposit.
    Addicted to MSE.
    Overpaying mortgage for a better debt free life!
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