   
Ronan Marrion
Posts: 7
Joined: 10/8/2010
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BTL Mortgage Query
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Please see below a Buy To Let Mortgage Question which I was asked recently. Below I have copied in my response and hopefully this will be useful for anyone in a similar situation.
Can you still get a 'Buy To Let' mortgage? Everyone says there are very few of these types of mortgages around and any that are available are hard to get!
It is still possible to obtain a 'Buy To Let' mortgage and while there is no longer an abundance of mortgage products available, there is still a decent selection to choose from.
Criteria for most of these mortgages is fairly straightforward. Most will want to see that the proposed rent for the property will cover the mortgage payment (on an Interest Only Basis) by roughly 125%. Therefore the assumed rent the property will achieve will dictate the amount you can borrow.
Most of these mortgages will generally require a deposit of at least 25% although there is flexibility with some lenders if your overall assets are strong
If you are interested in acquiring other investment properties be sure to discuss your situation with an independent mortgage broker as you may have other options available to you for eg. You could remortgage your existing residential property and borrow all your money from there and the costs would be less or alternatively you could raise the deposit against your home. The less exposed the new lender is to the buy to let mortgage the better and the rates and availability will be more favourable.
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