Buy to let mortgage

Questions and Answers

Buy-to-let mortgage?

Q) Someone said i needed a commercial mortgage to buy a block of flats which i plan to rent out, but i was sure i needed a buy to let?! Are they the same thing, or is one of us wrong?! Furthermore, in what way and how much more expensive are Buy to let mortgages than normal mortgages? PS i'm thinking of a repayment mortgage here

A) I am not sure I would ring up a building society that you like the look of and trust and doesn't have high rates.

Buy to let mortgage?

Q) When applying for a buy to let mortgage do they take income that you will get from the rent of the property into consideration with your earnings for the size of the mortgage.

A) Unless you are putting quite an amount down there will be very little money over and above the rental value. The rental value must be 125% meaning the mortgage plus 25%. All lenders have a different criteria. You should use a qualified mortgage broker with good knowledge of Buy to Let. The Buy to Let market is risky at the moment, too much property not enough tenants. Good Luck

Best Buy to let mortgage deals?

Q) Anyone know what the best websites are for buy to let mortgage deals?

A) www.moneysavingexpert.com

UK - Buy To Let Mortgage 89%LTV - no proof of income & only aged 23. Is it possible?

Q) Does anyone know a company who will do a Buy To Let mortgage on a purpose built leasehold flat in the UK for a 23 year old with good credit check but only an 11% deposit. Has just been turned down on the grounds of age (needed to be 25). Can anyone help please?

A) Hi I've had a quick look round and they either say over 25 or you need at least 20% deposit. (Not fair at all on the age thing) It might be worth while trying a mortgage advisor in an estate agents. These are usually free as they get commission on the mortgage if you choose to take one out through them. If you have a branch of Connells by you, they offer the free service. Sorry I can't offer any more advice. Good luck Edit: I've found this company who will lend to over 21's. Max LTV is 85%. Could you get a loan to cover the remaining 4% deposit? Not sure about the no proof of income though but might be worth a try. Link below.

Confused about mortgages: Do I need to take out a buy-to-let mortgage if I want to rent out my property?

Q) I am a first-time buyer looking for a flat in Surrey. If I decide to rent it out straight away, would I need to get a buy-to-let mortgage? If I live in the flat for a while and then decide to rent it out do I need to change my 'standard' mortgage to a buy-to-let? How much rent should I be charging in order to cover the mortgage plus insurance/service charges etc?

A) If you are buying the property specifically to let you should get a buy to let mortgage. However if you aren't sure and don't currently have a residential mortgage then it would be in your interest to try and go down that route. Residential mortgages generally require less of a deposit. You are unlikely to get a buy to let for more than 85% of the value of the property. If you subsequentally decide to let the property you must ask permission of your lender. This won't change your mortgage to a buy to let as such but may affect the conditions by which you can get a second residential mortgage.

i have a buy to let mortgage and a joint residential mortagae. I wish to buy a property?

Q) to live in, can I do this as a residential mortgage or under a buy to let mortgage. The purchase price is £130,000 and I want to know how much % deposit is required is it 95% or more.

A) In the UK you are likely to be able to achieve a higher % if your earnings warrant it, but full details of youtr personal circumstances would be required. Talk to an IFA (Independent Financial Adviser), they don't usually charge for an initial appraisal. It could well be that any deposit can be refinanced from your existing properties anyway?

is it worthwhile to have buy to let mortgage?

Q) is it worthwhile to have buy to let mortgage in london for short term say 2years

A) Yes, two years is enough time for the property to go up in value. A buy to let mortgage is more expensive than a residential one but the rent should just cover it.

My ex partner lives in the house we bought together.Been told to take out buy to let mortgage, should i,can I?

Q) I have a son with her and therefore I continued to pay the mortgage so my son could continue living there and this replaced me paying child maintenance. Now finding it hard to get on property ladder again and she won't move out, buy me out or let me be her out. Spent £3000 on a slicitor and got nothing other than parental responsibilty, which of course is great, but got nowhere regarding the house. Can't even get a decent mortgage lender to give me a good fixed rate as I don't live there. I have recently been told to go for a buy to let mortgage, but unsure if I can without her signing something and unsure if this is the right way to go. Left two and a half years ago and it pissing me off. She living rent free and my monthly repayments keep going up. Any ideas??

A) If you own it, and have not signed anything giving her possesion, live there. Enjoy your child, and the rest of your house. If she doesn't like it, she can move.

Can I rent my House for 2yrs without having to switch to a buy to let mortgage?

Q) I just want to rent my house for approx 1-2 years do I need to change mortgage to a buy to let, they are alot more expensive and i'm not sure it would be worth the hassle

A) Check with the lender; many of them will let you do a modification for assignment of rents and leases that won't affect a rate.

If you have a buy to let mortgage for a property do you automatically have to pay capital gains on the profit?

Q) I have a couple of properties on buy to let mortgages and was wondering if there is a way or reducing your tax you may have to pay when you sell it or not and do they automatically know when you sell the property and chase you for the money?

A) You have to be a bit careful here as if you are caught for tax evasion, you can be put in prison. Basically, if you lived in the property for 6 moths, then you can get 3 years tax relief when you sell it. If you sell it after 4 years, you will pay tax on 25% of the increase in value from when you bought it to when you sold it. If you haven't lived in it, you have to pay tax on any increase in property value except for the house you live in. You also have to pay tax on any profit you make whilst renting, but you can offset that against many things including the interest payments on your martgage, cleaning, maintenance etc.

buy to let mortgage?

Q) hi, i own a flat which has been valued at 215 in london bought for 192 2 years ago with a 20k deposit. i want to get a second buy to let mortgage - my income is about 42k with no loans or committments.. but i keep getting told i am not eligible - does anyone know where i'd be best off going for this or if i just own't be eligible..? Thanks a lot, Jo thanks dee. i'm assuming there's nothign bad on my credit as i got the mortgage and equity release on teh first one. i think it might be that i'm asking to borrow too much.. :-1

A) Hi. I answered your question about how to invest 20k. I could be wrong but that Swiss-cash someone advised you about sounds like a scam to me. I checked out the web site myself and plenty of others that it sent me to (always on the look out for a good idea). Be VERY careful. They are making a lot of claims they can't substantiate. Not telling investors where or how their money is invested is bull. Read the small print. Whatever the amount of money you personally put in to their scheme, you can NEVER withdraw. They also claim to be affiliated with Swiss Mutual Fund 1968 s.a. As far as I can make out it is a legitimate bank 'UBS' (do a google check) UBS web site does not appear to recognise the implied affiliation with Swiss-cash. My advice is for you is to ask the opinion of people that you know and trust about these 'investments'. If you decide to go ahead with one of them, invest the minimum amount of money then sit back for 12 months or so and see what happens. Don't invest any money that you will cry over if you loose it. When these people know you have money they become your new best friend. As my dad always said, 'There's no friends in business, darling,' and from what I've learned in life, he was right.

Can i get a buy to let mortgage at 19 years old?

Q) I want to buy a house to let out in the region of £60,000 to £70,000 do you think i would be able to get a Buy-to-let mortgage at 19 years old?? Earn about £8000 a year

A) ?

how to get buy-to-let -mortgage?

Q) just started working for myself no accounts but have money for a deposit

A) It's called "lease purchase". Find a real estate agent he'll have the listings and help you through the process.

What is the average buy to let mortgage interest rate?

Q) And what about the average amount lent?

A) It depends on quite a few things. Usually the lender looks at 3 things. 1 the loan amount compared to the appraised value of the house. 2 your debt to income ratio 3 your credit On my website there is a running ticker showing the current rates on many loan types. Its updated by the minute. However your rate will depend on the 3 factors mentioned earlier. http://www.freemortgagepro.com P.S. Im a loan officer so if you have more questions just email me at info@freemortgagepro.com

Is it much easier getting a "Buy to Let" mortgage?

Q) London

A) BTL (investment loans) are more difficult to obtain. Lenders base their lending guidelines on risk. Rentals are considered risker investments for banks versus primary residences, therefore underwriting guidelines are more stringent and rates are higher.

can a UK resident get a buy to let mortgage for a property in Barbados?

A) yes, barbados is a member of Commowealth. I love Barbados! I found the best mortgages here. Good luck! http://all-mortgage-calculators.blogspot.com

what is the best way to fund a buy-to-let-mortgage is it to release equity on your own house or a mortgage?

A) The best way is dependent on degree of risk and carrying charges of loans. If you have an estate that has a lot of capital value. A mortgage against the home is your own money paying you to have an income producing property. If you are average below 75% ownership of equity in your home, then a mortgage on the property to let is the best course of action. You should pay the mortgage on rental property at twice the speed as a mortgage on a home. The sooner the rental property is mortgage free the sooner you are freed from mishaps that come with rental of income property.

Can I get a residential mortgage when i own a buy to let property? I currently live at home?

Q) I currently live at home but have a buy to let property in Kent. I have been offered a job in Berkshire so will be moving out and am reluctant to sell the flat! Can I get a seperate residential mortgage for me to live in and have two mortgages from just the one salary?

A)

why would a mortgage company let you buy a condo without wind insuranace in lousiana.?

A) They shouldn't

i have applied for a new mortgage on a buy to let property,?

Q) the new providers want me to pay a £50.00 penalty for using my previous insurance rather than theirs, i have paid extra to the insurance company to put them on the policy, the policy was taken out last october and i have paid the extra to last until october 2007. do i have to pay this in order to take up there offer?

A) You need legal advise. Visit www.prepaidlegal.com/hub/yvetteodom and call with any questions.