100% BTL Mortgage
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    Default 100% BTL Mortgage

    Do they still exist?

    Have a property with a mortgage LTV at about 70%, its let out at the moment and now things have settled with a new tenant Id like to remortgage. NatWest who all my other accounts are with are happy to give me a BTL Mortgage up to about 75% no qualms.

    However what ideally Id like to do is take out as near a 100% Mortgage and use the balance to buy another property, the equity in the BTL is about the 10% Id need as a deposit for the place I want to buy, does anyone out there still do 100% Mortgage for BTL?
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    Quote Originally Posted by SimonMac View Post
    Do they still exist?

    Have a property with a mortgage LTV at about 70%, its let out at the moment and now things have settled with a new tenant Id like to remortgage. NatWest who all my other accounts are with are happy to give me a BTL Mortgage up to about 75% no qualms.

    However what ideally Id like to do is take out as near a 100% Mortgage and use the balance to buy another property, the equity in the BTL is about the 10% Id need as a deposit for the place I want to buy, does anyone out there still do 100% Mortgage for BTL?
    Why would you need the capital for another house. Couldn't you just get infinity BTLs with 100% mortgage?
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    SM

    Assuming you're talking about personally held property rather than in a company:

    70% LTV is about as far as you want to be leveraged on a BTL now. The new section 24 taxation that is being phased in will hit high LTV properties the hardest, even more so if you are a higher rate taxpayer.

    So I wouldn't leverage any further if I was in your position.

    And you should speak with a property accountant if you need more info on s24.

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    Quote Originally Posted by northernladyuk View Post
    Why would you need the capital for another house. Couldn't you just get infinity BTLs with 100% mortgage?
    Because I'd like to still live in this one after the bubble bursts and I lose the other house
    Live a good life. If there are gods and they are just, then they will not care how devout you have been, but will welcome you based on the virtues you have lived by. If there are gods, but unjust, then you should not want to worship them. If there are no gods, then you will be gone, but will have lived a noble life that will live on in the memories of your loved ones.

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    Quote Originally Posted by ChimpMaster View Post
    SM

    Assuming you're talking about personally held property rather than in a company:

    70% LTV is about as far as you want to be leveraged on a BTL now. The new section 24 taxation that is being phased in will hit high LTV properties the hardest, even more so if you are a higher rate taxpayer.

    So I wouldn't leverage any further if I was in your position.

    And you should speak with a property accountant if you need more info on s24.
    Yes, personal not company, I only have one other house and no plans to get more, quick reading up as long as my combined income doesn't hit over 45k per annum I should be ok from any major impact from S24.
    Live a good life. If there are gods and they are just, then they will not care how devout you have been, but will welcome you based on the virtues you have lived by. If there are gods, but unjust, then you should not want to worship them. If there are no gods, then you will be gone, but will have lived a noble life that will live on in the memories of your loved ones.

    ― Marcus Aurelius

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    Banks don't only care about the LTV now. They also care that you can afford to pay the rent if the tenant doesn't pay or whatever. I was only able to borrow about 60% LTV on mine because the rent needed to be something like 125% of the mortgage payment.
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    Quote Originally Posted by b0redom View Post
    Banks don't only care about the LTV now. They also care that you can afford to pay the rent if the tenant doesn't pay or whatever. I was only able to borrow about 60% LTV on mine because the rent needed to be something like 125% of the mortgage payment.
    It's 145% rent coverage for a lot of banks now following the S24 changes...
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    Quote Originally Posted by eek View Post
    It's 145% rent coverage for a lot of banks now following the S24 changes...
    Yes.

    Except on 5 year fix loans - which is the best route to take now in my opinion.

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    Quote Originally Posted by SimonMac View Post
    Yes, personal not company, I only have one other house and no plans to get more, quick reading up as long as my combined income doesn't hit over 45k per annum I should be ok from any major impact from S24.
    As part of the punitive taxation regime of S24, gross rental income is now added to your overall income before loan interest is taken off. This means that you will be taxed on gross profit, less only non-loan costs.

    This is the real kicker most people are missing. So many people will be pushed into the higher rate tax bracket due to this - so this is what you need to be aware of.

    As a contractor it hits us double because it reduces the amount you can earn from your IT company before suffering higher rate dividend tax.

    Going back to your original request, you won't get a 100% loan (unless you get private funding) but you can get up to 85% from specialist lenders like Kent Reliance. As you might imagine, these do come at a cost.

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