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Hi
Ive seen a property for 180,000, if i get it on a BTL mortgage, i dont have to show proof of income do i?
Also, how can i buy it without paying a deposit exactly?
Do i get a loan to value and value it at 200,000, but get the mortgage at 180,000 etc?
Advice appreciated
Thanks
Matt |
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I take it you have been listening to the advice on the seminar. Some mortgages you can get at 100% but only if you get the seller to drop their original price by, say about 20%. Phone Alex, he can set you straight on this. |
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I need to be able to do it legally.
Isnt there a way without getting 20% off?
Matt |
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how are you going to make money out of it, by renting it out or refurbing? it's usual to have to supply some cashflow to a deal, just so you've got some breathing space and lenders see some blood on the table. |
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I will be renting it from myself.....lol. |
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Hi Matt,
Regards the above, u r right regards not having to prove income but please note that as u r a 1st time buyer u will b somewhat ltd to possibly only 2 lenders and i think only 1 of these will do u on a self cert basis, but then u may have a problem with rental income. Rememeber rental will have to cover 125% of mortgage payment, Even if u could get the above deal then what about affording the mortage as i doubt if the renatl will cover.
Your possible lender is The Mortgage Business
Alex M |
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Thanks Alex
Well i could say it will cover 125% of the mortgage, as it would be me renting it off myself, so thats not really a problem.
I also have bad credit, can i still do this?
Matt |
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"I need to be able to do it legally. "
Erm, getting a 20% discount is perfectly legal |
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Hi Matt, The rental figure will have to be confirmed by the valuer, he is responsible for doing his homework and then telling the lender what the property will rent for and how long it will take to rent it out.
You not suppose to be renting it off yourself either so if the lender were to know this then he would not allow the purchase as a buy to let.
Alex M |
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I will rent it to my partner, LOL!!!
Matt |
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It still comes down to the surveyers estimated rental value. If he says it's worth 'x' amount rental pcm then the lender will take that as the value.
If you don't agree with it it's up to you to run around obtaining better quotes from local letting agents but to be honest lenders are hard to persuade otherwise.
The lender won't lend on your estimation, only the surveyors or in extreme cases the collective letting figures obtained. |
