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  • Mortgages & Finance

    Commercial BTL for first time landlord

    Hi all,

    I am a first time landlord with a few off-plans completing in the next few months. All were bought under my limited company’s name.
    I have been quoted for a 2 year fixed interest only commercial BTL mortgage at 4.2% @ 60%ltv. Loan amount is around £100k. 
    Does this sound reasonable for a first time landlord?
    Is it true that as a first time landlord I can’t get the advertised rates on most websites (at least for the first few years)?
    Any advice would be appreciated.

    Many thanks.

    Chrila

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    Hi Chrila,

    To answer your questions,

    A LTD company mortgage will often attract a slightly higher rate but I have seen better than 4.2% for £100k.

    It depends on what the lender is advertising, there may be a FTL deal running but they are pushing another product.

    The best thing to do is have a look across the whole of the market, including the intermediary only deals and see what the best option for you would be.

    It is however all based on your personal circumstances at the time and not something I can just tell you, are you available for a phone call and I can see what we can come up with?

    Austyn

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    Financial Consultant working with Property Tribes Financial Services.

    BTL Specialists.

    Always cover your debts, don't leave them for your loved ones to pick up. Ask me how - austyn@ptfs.co.uk     07500 871209


    Wow!

    What is causing such high rates. Are lenders concerned about your ability to complete on the purchases? It seems a very high rate.

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    Chartered Accountant, Tax Advisor and Mortgage broker

    (and BTL portfolio owner)

    stuart@johnsonsca.com

    02039077022

    "Are lenders concerned about your ability to complete on the purchases?"

    I've never heard that of a reason to have higher interest rates. Perhaps you meant something else?

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    _________________________________________________________________________


    My posts are not financial advice, just a rambling guy passing time on a coffee break.
    The team at Bespoke Finance offers advice, including Limited Company Buy-to-Let , HMO Conversion and Cheap Life Insurance.

    _________________________________________________________________________

    It is because Chrila said there were a number being bought off plan so there are a number of future capital commitments which may be unaffordable and a lender could be concerned about whether this legal and financial obligations could be met.

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    Chartered Accountant, Tax Advisor and Mortgage broker

    (and BTL portfolio owner)

    stuart@johnsonsca.com

    02039077022


    I have just left a meeting where we were discussing First Time Landlord LTD Company BTL at 75% LTV at 3.34%.

    So 4.2% seems rather high. I'd not want to second guess your other mortgage adviser, they will be furnished will the full facts which may have led them to that recommendation.

    Though it's always worth a call to the team at Bespoke Finance on 08009202001 or email hello@bespokefinance.info

    It is kind of true that the market leading rates are not available to First Time Landlords. Though a lot of lenders these days are happy with the situation.

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    _________________________________________________________________________


    My posts are not financial advice, just a rambling guy passing time on a coffee break.
    The team at Bespoke Finance offers advice, including Limited Company Buy-to-Let , HMO Conversion and Cheap Life Insurance.

    _________________________________________________________________________