Buy-to-Let Contractor Mortgage

[jlo1983]

Hello,

Does anyone out there know if an 80-85% Loan-to-Value (LTV) buy-to-let mortgage is available to the contractor market? I thought I'd ask the question here prior to contacting the Contractor Mortgage specialists.
I've previously been in touch with CF, a few years ago now, and a 75% LTV BTL rate was the only rate typically available (through Natwest etc.) at the time
Any advice would be appreciated to understand if it's worth pursuing further.

Cheers.

[northernladuk]

Why do you need a contractor mortgage for a buy to let?

Speak to Freelancer Financials. They will be best placed to answer your question

[SuperZ]

A BTL mortgage will mostly be based on the property value/potential income it generates so they do not need to be contractor specific mortgages. For a residential mortgage it's a different story. Best speak to an advisor on the BTL who will look at the best option available to you.
Nothing wrong with high % LTV BTL mortgages depending on reason for wanting it but personally I prefer to keep <= 70%. The interest rates are not always great, depends if you want to stump up the mortgage lender fee or no fee (no fee higher means APR where as the upfront fee can be £2000 or more). The current BTL rates on offer are a little better than last year.

[javadude]

Hello,

Does anyone out there know if an 80-85% Loan-to-Value (LTV) buy-to-let mortgage is available to the contractor market? I thought I'd ask the question here prior to contacting the Contractor Mortgage specialists.
I've previously been in touch with CF, a few years ago now, and a 75% LTV BTL rate was the only rate typically available (through Natwest etc.) at the time
Any advice would be appreciated to understand if it's worth pursuing further.

Cheers.

Also I believe there's something in the budget that will mean some people will end up being taxed more than 100% of the profit from buy-to-let where the mortgage % is large. I don't understand the details so best talk to someone who does.

[Gordon ContractMortgages]

Hello,

Does anyone out there know if an 80-85% Loan-to-Value (LTV) buy-to-let mortgage is available to the contractor market? I thought I'd ask the question here prior to contacting the Contractor Mortgage specialists.
I've previously been in touch with CF, a few years ago now, and a 75% LTV BTL rate was the only rate typically available (through Natwest etc.) at the time
Any advice would be appreciated to understand if it's worth pursuing further.

Cheers.

If you are an experienced landlord then check with The Mortgage Works as they may consider it at 80% up to a place at £350,000.

[ChimpMaster]

Yes beware George's BTL tax rip-off! You might want to reconsider how highly leveraged you are comfortable with, once you understand the proposed tax rape.

I wouldn't do 85% because personally that is beyond my comfort level. I prefer to go in at 70% and that opens up decent BTL options such as with Virgin. If you can't reduce to a lower LTV then consider borrowing from your Ltd Co - again, make sure you understand the rules here. For example, I have borrowed 50k from my Ltd Co to part-pay a BTL purchase in cash (bought BMV), and will repay that loan within the necessary timeframe.

If you must go in at 85% then Kent Reliance is an option, though you will end up paying higher rates with such a small deposit. But speak with Freelancer Financials as a starting point - they are really good.

[jlo1983]

Brilliant, many thanks for the advice all. Much appreciated!

[centurian]

Yes beware George's BTL tax rip-off! You might want to reconsider how highly leveraged you are comfortable with, once you understand the proposed tax rape.

Which is also compounded in that higher leverage tends to mean paying a higher rate of interest, which means the changes in the budget hurt even more.