Two UK buy-to-let questions - please see below.?
I want to get into the UK buy-to-let scene. I do not have much in savings as was wondering as follows:
1. Are there lenders that will lend 100% mortgages for buy-to-let? If not what is the biggest percentage they will lend?
2. Are there agencies that specialise in selling houses with sitting tenants?
Serious answers only please.
- 1 decade agoFavorite Answer
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- susie03Lv 61 decade ago
1. No - you will only get a reasonable rate of interest if you have at least 25% to put down, up to 85% some places will lend but the repayments will be more than the rent you can get. No one will give you 100%.
2. This kind of property is sometimes avaibable through local auctions. However you need to have the money (or guaranteed mortgage) ready before you even bid.
As a number of people have said, this is a poor investment even if you had the money. The interest on borrowing will exceed the rental profit so you will lose money.
- TwinklesLv 41 decade ago
1. No, you need to have a deposit to get a buy to let mortgage. The maximum available for lending is 85% but you also need to fit with the lenders criteria. They will need the rental income to be sufficient for the mortgage and in many cases they will be looking for the rent to be 125% of the mortgage payment. Some lenders also want the landlord to have a minimum personal income.
It is essential that you have money behind you before going into buy to let as if the property is left empty at any time you need to be able to cover the mortgage payments and other costs. You also need to be able to afford to cover any issues with the property. If you forfeit on a buy to let mortgage, it not only will mean that you will find it extremely hard to get another one but it wil affect your personal borrowing and make it very difficult to borrow in the future.
2. I have never come across any agencies that specifically sell properties with siting tenants.Source(s): 10yrs+ as an independent financial adviser
- Butternut27Lv 51 decade ago
No lender will give a buy to let mortgage without a deposit...even in the days of lax lending..you need at least 15% esp if you have no other buy to lets...
there are agents up north that sell with sitting tenants..next2buy is their name..some lenders are funny about sitting tenants though..good luck...
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- 1 decade ago
There are much better ways to lose all your money. Like gambling, or just throwing it away.
Seriously though, rental returns are running at about 2.8% at the moment, and since you'll get a better rate of return in a decent Building Society account, BTL is about the worst idea in the world right now.
Add to that the fact that house prices have been dropping now for the last 5 months, and are expected to keep falling throughout the remainder of this year, then money invested in BTL today will yield substantial losses over the next 12 months at least.
BTL is yesterdays news, and all the savvy BTL'ers are exitting like rats from a sinking ship.
As the adage goes "prices started heading south the moment the pool fo greater fools dried up". Are you one oif the "greater fools"?
- ADadLv 51 decade ago
Buy to let is not a good investment currently in the u.k
House prices are continuing to fall. Credit is drying up.
- Lee HLv 51 decade ago
Adad is right.. missed the boat big time on this... move on, think of something better to do with your time, effort and money.