Buy to let mortgage at 80% loan to value (80%LTV) which means you only need 20 percent deposit to purchase or remortgage your property.
I’m delighted to announce that we have now added yet another lender that can offer our clients a buy to let mortgage at 80% loan to value. The big difference with this lender is that the applicant does not have to be an established ‘professional’ landlord as it is open to ‘first time landlords’. This is on the proviso that the applicant is a residential homeowner.
The first time landlord criterion is a departure from the other buy to let products in the market which sets this new product out from the pack. Also, buy to let mortgages at 80% loan to value have been uncompetitive, as most lenders have shied away from advances with low deposits, with high rates and arrangement fees, therefore another lender into the fold should spice things up.
Acceptable lending criteria for a buy to let mortgage at 80% loan to value:
- Applicant must be working and can prove employment or self-employment for the last two years.
- Although there is no minimum income stipulation, however regular income credits will need to be demonstrated in the last 3 months’ bank statements. The account should well conducted and in credit (the healthier the balance the better). As a guide the monthly credits should show a minimum annual income of £18-£25,000 per annum which can include existing rental income.
- Applicant must own an existing UK property. This does not have to be their place of residency for example, they could own a buy to let and live with their parents.
- Minimum property value is £75,000
- A perfect credit record is required. There must be no late payments, CC Js or defaults showing on your file even if they were in the distant past.
- New Build Flats & Houses are acceptable.
- Available for up to 3 properties with the lender.
- No limit on number of other buy to let mortgages with other lenders.
- Available in England, Wales and selected postcodes in Scotland – but do remember about their minimum property value of £75,000.
- Client Maximum age is 75 years old
What is not acceptable for a buy to let mortgage at 80% loan to value:
- No proof of income or employment or a loss on your last year’s trading account.
- Any adverse credit in the past including late payments in the last three years, defaults and CCJ’s in the last six years. People who have been in bankruptcy or IVA in the past are also not acceptable.
- If you do not already own a property in the UK residential or buy to let.
- Properties valued or bought under £75,000/
- Multiple Tenants / HMO properties.
- Ex-local authority flats
- Please refer if the flat is above a commercial property
As mentioned above we now have a number of lenders are willing to lend on buy to let mortgages at 80% loan to value but each product is very specific to an individual’s needs and needs to be discussed with us to ensure that you are eligible.
Consideration also needs to be given to remortgaging after the benefit period as choice may be restricted due to you equity at the time.
For more information on our range of buy to let mortgages at 80% loan to value please complete the enquiry form on the right-hand side of this page alternatively call us on T: (020) 7993 2044
Payam Azadi is a partner at Niche Advice Ltd who are Independent Financial and Mortgage Advisers in London.