maurits
Apprentice
Joined: 25 Apr 2004
Posts: 4
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 Posted: 01/02/08 - 08:35 Post subject: |
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| Hello everybody. I am about to inherit some money from one distant relative I didn’t even know I have. It came as a big surprise and in a good moment, since I was thinking about going into some business venture. I did some research on the net, and it amamzed me how BTL property market is bustling in our country. So, I think I’ll use the money I have to buy some BTL property. However, I don’t think that I’ll have enough money. Probably I’ll have to take a mortgage. So, I have a BTL mortgage question. Is it any different from regular mortgage? |
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willi
Apprentice
Joined: 14 Jan 2004
Posts: 2
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| Posted: 02/05/08 - 00:03 Post subject: |
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| Hello! As you probably saw on the internet, BTL property market is becoming more and more popular. I think that now BTL properties acount for 25% of all properies that are let. Like you, there are investors which cannot afford to buy BTL property by themsleves, so they need assistance from institutional lenders. In other words, they have to take a mortgage. Nowadays, there are several types of BTL mortgages. There are fixed rate mortgages, variable rate mortgages and so on. What is different is that lender will usually require a 15% deposit. They will also take future rent into account. Usually they insist that rent covers 125% of a mortgage payment, though you can find lenders that will accept 100% coverage. Purpose of this is to protect both sides from eventual vacancies, periods when flat is not rented. Other than that, I think it’s pretty much the same. Bye! |
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