BTL deposit

Posted on 14 March 2010 by neil


I want to change my mortgage to a buy to let soon as I am moving in with my partner.  Prices are down at present and I want to hold onto my property.   I put a 10% deposit towards my flat, you need a 25% for a btl do I need to put 15% or another 25% towards it?

Neil

You are correct that you need a deposit of 25% to secure a Buy to Let (BTL) mortgage. If you already have 10% equity in your property, then you only need to add another 15% to reach this.

That said, if you can put in a larger deposit you will find that you have a far greater chose of lenders and combinations of mortgage rates, fees and repayment types.

I recommend that you speak to an independent mortgage broker who can demonstrate these options for you before you decide how to proceed.

Peter

Answers provided in response to Ask the experts are based on the information provided and do not constitute advice under the Financial Services & Markets Act. They reflect the personal views of the authors and do not necessarily represent the views, positions, strategies or opinions of John Charcol. All comments are made in good faith, and John Charcol will not accept liability for them.

We recommend you seek professional advice with regard to any of these topics where appropriate.

You are currently offline. Some pages or content may fail to load.