General (main property discussion here) - Buying a second buy-to-let property

I bought my first buy-to-let a year or so ago. I want to invest in a second property and can pay 20% deposit. Only problem is that properties in this sought after area are ~170-175K with max rental income being £650(max). This means that 130% of rental income will not be achieved. What are my options: save more deposit or are there lenders out there who will apply different criteria

Hi, Raj.

There are lenders with better calculations than 130%. That rent is really too low though. I would suggest you need at least £700 to make it work even with lenders who use a more favourable rental calculation. Northern Rock, BM Solutions and Close Mortgages are probably amongst the best.

If it is really sought after, why is the rent so low? Is it flooded with BTL already?

Hope this helps.

Alan

http://www.atlas-mortgages.co.uk

thanks for your comments Alan. Of course ideally I'd love to get double digit rental yield + great capital growth so if anyone has areas of UK in mind....At the moment I want to get a property close to where I live so I can save on the property maintenance fees. The capital growth in the area I am looking is looking very encouraging

Raj

try the www.t-m-b.co.uk they do not take rental calculation into account as long as your income can afford the shortfall then your ok, and guess what they will allow you to self certtify your income.

Best to use a broker, though i am one i do not want to pitch for business here as i only deal with a few high net worth client's and i just help them to buld there portfollio.