Buy to let mortgages

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    Buy to let mortgages

    Hi
    Looking for some guidance with btl mortgages currently have 10 properties on mortgages, there is a massive number of houses near me selling for under 50K that with 10K of refurb will rent for £450/475. Issue ive got is that BM only allow 3 mortgages which ive got and mortgage advisor who I'm starting to relise isn't the best cant find anyone who can get a mortgage for a property valued at 40K. Anyone else come across anyone?
    Thanks

    #2
    My immediate reaction is that if there are “masses” of Property for sale at below £50000 I fear that any lenders valuer might express concerns over Suitability and saleability. Your broker is indeed correct that for most lenders there is a minimum property value of at least £50000 with many having a higher threshold.
    Assuming Suitability would the capital spend of day £10000 enhance the capital value similar to properties having been sold for higher amounts, just because you consider spending such an amount doesn’t guarantee a commensurate increase. If Properties could achieve an enhanced value after refurb then you might want to consider taking out a Bridge Facility and ideally refinance with a lender who doesn’t insist on the property being held for a minimum of 6 months. It isn’t a cheap option but unless your broker stumbles across a lender this might be your only option unless you have adequate equity within your existing portfolio to do further advances or refinance to release monies to buy one or more properties for cash .

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      #3
      Hi after a refurb be worth about 65/75k probs 65k for a remortgage. Looked into bridging loans and it’s mega expensive. Got 2 houses going up for sale that we’re bought to sell, but want to hold o to that money to buy and sell not to use for rentals ideally, just takes to long to get money back, about 8 month last
      time with Mortgage works although now I don’t have any money left it that one so a bonus
      never mind just hoped could find someone thanks

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        #4
        May have exagerated hoe many but there’s 3/4
        i would have a go at within 3 miles

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          #5
          Exaggerating such numbers is highly misleading if you want advice from forum contributors to reflect lending options and strategy.

          I cannot understand why TMW would take “about8 months” to get your money back, do you not mean 8 weeks ?? I ask this as Mortgage offers on BtL are only normally valid for between 3 & 6 months so 8 months would have required a revaluation and possibly a new mortgage offer so I suspect it is weeks not months.

          At the end of the day you are still faced with the problem of sourcing finance for a low ticket property and Bridging is the only optionunless you can source private funding in return for a share of the profits assuming you are intending to flip rather than hold.

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            #6
            Hi no plan with these is to just keep buying and keeping them as but to let’s I’m flipping higher priced houses 90-150k. Sorry 8 month includes 6 months you have to wait so Mortgage works normally takes about 2 moths sometime far quicker, I’ve got 6 with them now and never had any issues with them. Will keep looking but guess wha I want doesn’t exist

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              #7
              Gandolf - Talk to a bank. I deal in exactly the sector you are talking about and indeed many BTL lenders have silly criteria which is not relevant to many areas up North. What you need is commercial loans which is what I use. Get a commercial lender on side and take them your entire portfolio as they will need a few units to make it worth while. You may pay slightly higher fee's but you will not need to refinance as often. There is a massive upside to commercial lenders as they will take an opinion and lend on anything in any condition. Also once you prove to be a trustworthy business partner they will help you refinance releasing equity and buying more and more (if this is your plan). Every single large landlord uses a commercial lender, not BTL. Find a commercial broker, depending on whether you want low rates or a more adventurous lender with higher LTVs will depend on what you are looking for. Hope this helps

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                #8
                ok thanks this is something ive been told about but never really found anymore, can you recommend anyone? As most of the houses are low value from 25k-115k thanks

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                  #9
                  It depends how aggressive you want to be - If you want to expand a lot I would suggest Aldermore or someone but I think you will need a broker, they will offer higher LTV, probably better valuations but you will pay a higher premium. Other lenders which you could possibly deal directly with are Lloyds bank, Santander......may be worth speaking to a broker. You will probably need to bring them a minimum of 3-5 properties for it to be worth while. If you want to go from 5-10 up to 20-30 in a reasonable time then this is definitely the play. The market you are in should be due for a lot of growth in my opinion. Houses you buy at 40-45k may very well be worth 100k if the property cycle works as it did throughout the last boom. I would suggest be very aggressive as these kinds of returns will not last forever, they are already running out in many areas I see. It is a bitter pill to swallow the cost of moving everything over but it is a step worth taking if you want to make a lot of money

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                    #10
                    Thanks for help will contact them and see if they can recommend a broker, I’ve got 10 now but my aim is to get 25 in the next 3 years fingers crossed thanks for help appreciate it. Hopefully I can give back rather than just take overall on forum

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                      #11
                      Good luck and a very good plan in my opinion

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                        #12
                        hech123,

                        Who do you use if you don't mine me asking? thanks

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                          #13
                          I use Lloyds who are very good but I am a long term customer with very large lending figures. Not sure what they would be like with smaller deals. They are one of the only banks who offer 20 year money currently though, maybe others will look to give you 5 year money with a renegotiation period at the end. I would try them first to be honest as the 20 year terms are much better

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                            #14
                            Ok thanks that’s problem properties aren’t worth fortunes probably from about 40k-100k thanks

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