Low value buy to let mortgages

Low value buy to let mortgages

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Guest Author

15:57 PM, 28th April 2013, About 11 years ago 7

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Low Value Buy to Let mortgagesI am absolutely amazed that in this current economic climate with the government making people down size to smaller homes or pay a “bedroomTax” and more people having to rent because they cannot afford to buy, that a buy to let landlord cannot obtain a mortgage for property valued under £40,000.

I own a Ten property portfolio great credit rating and employed status to show income, I can get £100-£150k mortgages no problem.

However at my location the most lucrative properties are one bedroom Uni Flats current market value £35 to £40K, over the past 20 years I have own over 20 of them and have just bough another for £25k cash refurbished it for £3k and have a Tenant paying £315 per month.

The question is why cant I get a Buy to Let mortgage?

Not only is the risk to the Lender minimal should the worst happen, the loss would be minimal. Lending lots of smaller amounts would mean lots more in fees and it is the sector which the government agree needs the most help i.e. homes for young people, single parents  affordable housing.

What do you think?

Are there any decent deals out there for low value buy to let mortgages?

Ray Doyle

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Howard Reuben Cert CII (MP) CeRER

9:57 AM, 29th April 2013, About 11 years ago

Hi Ray

Not as much a problem as you may think.

As a whole of market BTL mortgage Adviser, I have access to all of the banks, building societies and specialist lenders, and I can confirm that smaller BTL mortgage loans are available.

In fact, the following is an extract from one of our lenders criteria pages;

"Minimum loan for Right-to-Buy applications is £10,000, or the products specific minimum, which ever is the highest. For all other products the minimum loan is £25,000 for residential or £15,000 for buy-to-let."

So, as long as you need at least £15k for any BTL deals, we can help (subject to .... credit status, income, property etc - the 'usual').

Hope this helps.

As an FCA authorised Firm (est. over 20 yrs), a Full Member of the NACFB and the AOBP, (as well as members of the Society of Will Writers & Estate Planning Practitioners) our team of regulated Advisers can assist in all aspects of your BTL financial and estate planning requirements.


12:39 PM, 4th May 2013, About 11 years ago

I have a similar problem looking to mortgage 3 flats worth around 40k each and I have been looking for a long time, like yourself. Whilst some lenders do allow low mortgages down to £15k (NatWest for example) they have a minimum property valuation of £50k. Their conditions are written as follows:

"Minimum loan for all products is £25,000 for residential or £15,000 for buy-to-let (minimum property value/purchase price for buy-to-let is £50,000)"

Any further suggestions appreciated.

Mark Alexander - Founder of Property118

15:33 PM, 4th May 2013, About 11 years ago

@Mike T - I can vouch for Howard (see comment above). I refer a lot of landlords to him and he's never let me down. If a deal can be done he's your man. If there are several options, Howard will work out the best one for you. To contact Howard please complete the form on the page in this link >>> http://www.property118.com/index.php/mortgage-facilities-for-professional-investors/36891/

NOTE - the content of the page I have linked to above does not relate to this discussion but the enquiry will be picked up by Howard.

Howard Reuben Cert CII (MP) CeRER

12:20 PM, 11th May 2013, About 11 years ago

Good to talk to you Ray and now that we have you formally approved for the deals you wanted, the paperwork is on it's way! 🙂

Portfolio review now underway as well.

Glad to have been of help, and thanks to Mark also for your kind endorsement.

7:59 AM, 14th May 2013, About 11 years ago

Hi ray

I have to say I am in the same position as you.
I have build a portfolio of 5 in the past 12 months. Since starting I was able to obtain buy to let mortgages for 25k but now there is nothing.

Lloyds bank have a commercial borrowing facility which I now use. Max ltv is 70 percent And it's repayment only furthermore the rent has to cover 190 percent of the monthly payment!

I am now looking to get employed again to assist but it is hard out there at the moment.

Warren Pitman

8:16 AM, 27th August 2013, About 11 years ago

I'm looking for a BTL mortgage on a 36k price but can't find anything h !!

Any advice or help ?

Mark Alexander - Founder of Property118

8:25 AM, 27th August 2013, About 11 years ago

Reply to the comment left by "Warren Pitman" at "27/08/2013 - 08:16":

It is possible but it's not cheap, see this thread and contact the author for more info >> http://www.property118.com/buy-to-let-mortgages-on-low-value-properties/41785/

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