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  • FIRST POST
    • PIX13
    • By PIX13 7th Feb 18, 12:12 PM
    • 3Posts
    • 0Thanks
    PIX13
    Buy-to-let mortgage rental cover ratios
    • #1
    • 7th Feb 18, 12:12 PM
    Buy-to-let mortgage rental cover ratios 7th Feb 18 at 12:12 PM
    Hi,


    I'm looking to remortgage my rental property (Around 70% LTV) but most of the mortgage providers have large rental cover ratios of 125-145% of the mortgage interest for the minimum rent required. Unfortunately the rent I receive isn't high enough to cover the 125%.


    Does anyone know any mortgage companies who do not have this as a lending criteria on buy-to-lets?


    Thanks,
Page 1
    • csgohan4
    • By csgohan4 7th Feb 18, 12:36 PM
    • 4,430 Posts
    • 2,782 Thanks
    csgohan4
    • #2
    • 7th Feb 18, 12:36 PM
    • #2
    • 7th Feb 18, 12:36 PM
    brokers would be your best port of call as they take all your details and tailor a lender to you
    "It is prudent when shopping for something important, not to limit yourself to Pound land"
    • PIX13
    • By PIX13 7th Feb 18, 12:48 PM
    • 3 Posts
    • 0 Thanks
    PIX13
    • #3
    • 7th Feb 18, 12:48 PM
    • #3
    • 7th Feb 18, 12:48 PM
    Thanks - Yeah I know. I have a good broker but I'm just trying to avoid broker fees if at all possible!
    • kingstreet
    • By kingstreet 7th Feb 18, 12:50 PM
    • 33,381 Posts
    • 18,068 Thanks
    kingstreet
    • #4
    • 7th Feb 18, 12:50 PM
    • #4
    • 7th Feb 18, 12:50 PM
    In which case, you'll need to roll your sleeves up and research the lender criteria to establish your options.
    I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.
    • amnblog
    • By amnblog 7th Feb 18, 1:16 PM
    • 10,469 Posts
    • 4,134 Thanks
    amnblog
    • #5
    • 7th Feb 18, 1:16 PM
    • #5
    • 7th Feb 18, 1:16 PM
    Thanks - Yeah I know. I have a good broker but I'm just trying to avoid broker fees if at all possible!
    Originally posted by PIX13
    Charming, I suspect you will get the result you intend to pay for.
    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.
    • logan77
    • By logan77 7th Feb 18, 1:19 PM
    • 21 Posts
    • 6 Thanks
    logan77
    • #6
    • 7th Feb 18, 1:19 PM
    • #6
    • 7th Feb 18, 1:19 PM
    Thanks - Yeah I know. I have a good broker but I'm just trying to avoid broker fees if at all possible!
    Originally posted by PIX13
    You can't have your cake and eat it lol. A broker saves you time and money.
    I am a Mortgage and Life Insurance Advisor.

    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
    • PIX13
    • By PIX13 7th Feb 18, 1:35 PM
    • 3 Posts
    • 0 Thanks
    PIX13
    • #7
    • 7th Feb 18, 1:35 PM
    • #7
    • 7th Feb 18, 1:35 PM
    Done some research and it seems that Barclays no longer do rental cover ratios if anyone else was having the same problem.
    • amnblog
    • By amnblog 7th Feb 18, 1:52 PM
    • 10,469 Posts
    • 4,134 Thanks
    amnblog
    • #8
    • 7th Feb 18, 1:52 PM
    • #8
    • 7th Feb 18, 1:52 PM
    Don't start handing our 'free' advice as well!

    You'll be putting brokers out of business.
    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.
    • Thrugelmir
    • By Thrugelmir 7th Feb 18, 6:27 PM
    • 58,490 Posts
    • 51,851 Thanks
    Thrugelmir
    • #9
    • 7th Feb 18, 6:27 PM
    • #9
    • 7th Feb 18, 6:27 PM
    I'm looking to remortgage my rental property (Around 70% LTV) but most of the mortgage providers have large rental cover ratios of 125-145% of the mortgage interest for the minimum rent required. Unfortunately the rent I receive isn't high enough to cover the 125%.

    Originally posted by PIX13
    Have you factored in the interest rate stress test. Not simply a rental ratio.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
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