baza31
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Registered: 19th Apr 03
Location: yorkshire
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As above, i have seen another house i want , i want a buy to let and i need £100k, i dont want to put down much as i am on with another project at the moment. Do you think the bank would give me 100k and i rest this mortgage on another house i own outright with no mortgage? or do you reckon they will tell me to jog on? i can easily afford payments for the mortgage and they can see this as i bank with them.
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Kerry
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Registered: 5th Oct 01
Location: Norwich
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remortgage the house you own outright for the funds?
as long as it doesnt go over the max ltv (loan to value) that the lender has i.e 80% of property value
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Russ
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Registered: 14th Mar 04
Location: Armchair
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English?
You own a house but the mortgage is paid? You want 100k to buy a house that is for sale for 100k? and you plant to rent it out?
That correct.
Answer - no. you need to put a 15% deposit (at least) on a buy to let property. if you would need to either a) remortgage your property that is mortgage free for 15k, then borrow the other 85k.
Or remortgage your property for 100k, and buy your BTL property outright
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baza31
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Registered: 19th Apr 03
Location: yorkshire
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i see. so could i take out the deposit from the house i own , i.e 20grand deposit and lend 80 from the bank?
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baza31
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Registered: 19th Apr 03
Location: yorkshire
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quote:
Originally posted by Kerry
remortgage the house you own outright for the funds?
as long as it doesnt go over the max ltv (loan to value) that the lender has i.e 80% of property value
the house i own i would say is worth 90ish , the house i want to buy is about 110 depending on the agreement.
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Russ
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Registered: 14th Mar 04
Location: Armchair
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You'd need to remortgage your property for a large enough amount to use as a deposit that matches your lenders deposit% on BTL properties
[Edited on 10-03-2011 by Russ]
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John
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Registered: 30th Jun 03
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They'll also require you to meet affordability for the mortgage, I don't think they'll take buying imaginary cars as legitimate income.
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Russ
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Registered: 14th Mar 04
Location: Armchair
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quote:
Originally posted by John
They'll also require you to meet affordability for the mortgage, I don't think they'll take buying imaginary cars as legitimate income.
what about searching families lofts for cash?
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John
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Registered: 30th Jun 03
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That might do, quite lucrative.
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Toby
Premium Member
Registered: 29th Nov 05
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quote:
Originally posted by John
They'll also require you to meet affordability for the mortgage, I don't think they'll take buying imaginary cars as legitimate income.
Not on a BTL mortgage its based upon the value of the property and the potential rental income. You do however need a massive desposit, i would say at least 20% and the arrangement fees are massive
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baza31
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Registered: 19th Apr 03
Location: yorkshire
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To answer been to bank , quite simple . I need 25% so 25 grand deposit. I get a mortgage of 25k on my house I own , and a new one of 75k . Jobs a good en and bank will back me so just need to get offer accepted now.
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Toby
Premium Member
Registered: 29th Nov 05
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i think you would get a better deal on getting a 100K mortgage on a rental property than try and get 25k on your and 75k BTL espically since the fees are astronomical, arrangment fee on that money will be about 2.5-3k
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