Hi
I am hoping to purchase my first buy to let property. I have found a house at a very good price, but it I am straggling to find a mortgage. I have about 15% to put down as a deposit, but everyone says it is not enough. What can I do? Please advise.

Hi
Unfortunatelly there are no products available which will allow you to borrow 85% of the purchase price. Most lenders will go to 75% and quite a few will not allow you to borrow above 70%. Are you currently a house owner? You may be able to draw some extra funds from your residential, providing there is some equity. Also speak to your estate agent and explain the situation, there may be a chance that you can renegotiate the purchase price. In the current climate, some vendors will consider to go well below asking price if they believe that you are serious and not a time waister.
All the best

Yes, for real most companies would simply allow maximum 75% LTV. But, there are few where you can get 80% or even 85% LTV for buy to let mortgage. You would need around £9000 deposit, though.
So, if you have not as large mortgage, you most likely will not find as high LTV. Unfortunately.
You should try to get more information from your mortgage company.

This is really sad to hear. I was hoping I could find at least 80% LTV, because it is really hard nowadays, you know, to pay off your mortgage while making a living. Well it was good to learn of the impossibility anyway. Probably, I will try to find a little better rate and try to refinance from what I have now.
Thank you, Working Bee, for the given information.

Sir, could you please name any of these companies or brokers that provide such services? It's important, because I am planning to purchase a buy to let mortgage, and it's going to be a big one.
And it would be great to get a deal with such LTV.
Thank you.

Hi there!
I don't know where working bee can find 80% or 85% mortgages and where £9000 figure come from. There are no 85% deals on the market! Working bee may as well have a buy to let mortgage of 85%, as until just a few months ago they were available, but for new purchases or even remortgages it is impossible to find one. For one reason or another lenders view buy to let as a more risky business and therefor offer lower loan to value ratio. I know that it sounds crazy, but it is fact. There is a really strong demand for rental property at the minute as people are just not ready to buy, but unfortunately lenders don't see it that way.

Actually, only couple of days ago I came accross an offer of a product at 85% of loan-to-value from one of the company's specialising in BTL mortgages. I'm not sure whether i could name the company but it's 2 year fixed rate at 4.35%. The fees are a bit high i thought, but if you are looking for 85%, you may be prepared to pay more. Surely, a good financial advisor would be able to point you in the right direction.

cat, I think you might talk to a mortgage broker who will offer you a number of deals. if you don't feel like hiring a broker, you might want to pay special attention to HSBC bank. I think I've read somewhere in the news that they are launching a Mortgage Matcher program, which enables borrowers to choose a deal from the whole of the market (for a certain fee, of course).

Unfortunately, nope!

Steve Smith