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Money matters

Buy to let mortgages - any less than 125% LTV?

10 replies

RanToTheHills · 27/02/2007 09:39

Wondering about buying house which would not give us a rental return -loan to value of 125% on the monthly mortgage payment.Wd any mortgage company loan on this basis? Say 100% LTV? Anyone know?Thanks!

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RanToTheHills · 27/02/2007 09:45

bump? she says hopefully?

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sarkin · 27/02/2007 21:28

You need 10% deposit and the rental income must be at least 100% of the monthly mortgage payment. Best lender for this is CHL they offer 90% loan to value with monthly rental calculations of 100% 115% and 125%. hope this helps

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RanToTheHills · 28/02/2007 09:53

thanks, is that Capital Home Loans?

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sarkin · 28/02/2007 14:08

Yes

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piglit · 28/02/2007 14:10

A lot of lenders want 25% deposit minimum as well.

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sarkin · 28/02/2007 19:46

Unless you speak to a broker and its 10% deposit

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preggerspoppet · 28/02/2007 20:11

hi, our btl mortguage company, chelsea, didn't really look into it -they certainly didn't ask for any proof from us and I'm not sure we get quite 125%. It was a 15% deposit for us.

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RanToTheHills · 02/03/2007 10:12

really? We've done it once already- they did check itout (Abbey)but from memory they took our word for it in terms of rental income, didn't send their valuer round.

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preggerspoppet · 02/03/2007 13:50

I guess it was the same for chelsea -just took dh's word for it.

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sarkin · 02/03/2007 14:50

When you apply for a BTL mortgage, the surveyour will contact agents in the area to find out how much simmilar propertys are renting for. If the surveyour does not think it will achieve the required rental income the bank will not lend. You can challenge the surveyours report and if you can come up with like for like quotes then you should be able to get the deal through. I would be surprised if they did not check as this is the only way the bank can work out if you will be able to cover the mortgage payments. As BTL should be self financing