Buy to let deposit

by Readers Question

7:33 AM, 17th February 2014
About 7 years ago

Buy to let deposit

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Buy to let deposit

I would like to ask why lenders require buy to let landlords to have a 25% deposit whereas residential borrowers only 10%?

I would assume, if both a BTL landlord and residential purchaser defaulted, it would be more risky for a bank to get back their funds [loan] via from a residential purchaser as it would have a higher LTV. Buy to let deposit

So what is the reasoning for this?

Thanks

Danny


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Colin Childs

17:41 PM, 17th February 2014
About 7 years ago

Reply to the comment left by "Jerry Jones" at "17/02/2014 - 14:34":

No different to Starbucks charging £3 for some boiling water and a touch of milk.

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