Simon20
Posts:3
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| 27 Sep 2006 11:22:14 |
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| Can someone please let me know what the standard maximum amount that lenders will lend on a Buy to Let mortgage? I'm looking at a property for £180,000 |
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MBJ
Posts:2
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| 28 Sep 2006 07:20:30 |
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Most BTL lenders will go to 85%, some have or are promising to offer 90%. The less you borrow the more options you have.
One thing to bear in mind, watch the amount of fees you'll be asked to pay. The better the interst rate the bigger the fees. Some brokers also charge a huge amount and some want a shed load of fees upfront, before they've even got you a mortgage, nealy got stung on tht 1 myself recently |
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J Fulton
Posts:4
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| 28 Sep 2006 08:01:41 |
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| Most lenders will also take the rental income into account. I recently bought a property and the valuer downgraded the amount of rent I was anticipating and it limited the amount I could borrow. I was given another option by the broker but the rate wasn't nearly as good so I stumped up more deposit and got the better rate. |
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shaunmurphy
Posts:6
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| 02 Oct 2006 07:13:28 |
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You can borrow lots of money...thats not the issue.
You have to make sure that you are getting a POSITIVE return on the total amount that you invest in the property against having money money invested in say deposit accounts..... If you invest say 100k in a house and are getting 5k pa in rent then thats 5% If you invest 200k and are getting 10k pa in rent then thats 5%
Cahoot pay 5.25 or around that so thats the figure you have to beat to make renting propery out worthwhile. |
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alan.buckley@yellgroup.com
Posts:0
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| 04 Oct 2006 10:00:35 |
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Shaun overlooks the main driver for property investment..it's not profit on thhrent, in faa the lower the profit on rent the better (provided maintenance is covered). The main driver is the increase in property values which Cahoot (or anyone other finacial institution for that matter) is totally unable to match.
The amount you can borrow will be influenced by the rent as most borrowers calculate on the basis of max 85% of valuation provided the rent exceeds the mortgage payment by at least 30%....otherwise the good deals suddenly disppear |
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eddidavies471
Posts:2
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| 13 Oct 2006 03:41:52 |
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| BTL is a market and where there is a market there are abusers about. Educate yourself thoroughly before you venture. Always remember that many of the market professionals (Traders) depend on new money to fund their lifestyles. Cynical, yes, but you can still make money. |
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