Buy To Let Mortgage Advice

[yogesh]

Trying to work out if there is any law which states you must go with a mortgage on the basis of what you want to do with your property.

For example do I have to go with a buy to let mortgage if I want to buy a property knowing I will eventually want to rent/let it or can I go with a regular mortgage and let it anyhow?

Without a buy to let mortgage am I still eligible to be able to get cover for rent guarantee?

[eyeC]

is there such a thing from banks as cover for rent guarantee????dont think so
they can insure your life and nothing else

[Robert Gavin]

You can get upto 100% mortgage as long as you can prove to the bank that it is your "primary" residnece.

otherwise you are limited to the 85% BTL one

[OFS Spain]

You may want to consider

http://www.propertycommunity.com/forum/ifa/2...g-buy-one.html

[king2163]

no bank can give rent guarantee.If somebody doesn't have money to pay rent, bank can't do anything.

[enabletechnologies]

I think you can only get one residential mortgage and all the others need to be BTL ones.

Rishi

[FinancialFreedomGurus]

There are lenders that will do 90% BTL mortgages and ones that still accept 5% gifted deposits.

Just need to use a creative technique to minimise your cash outlay.

[Werhop]

Originally Posted by FinancialFreedomGurus

There are lenders that will do 90% BTL mortgages and ones that still accept 5% gifted deposits.

Just need to use a creative technique to minimise your cash outlay.

Hi, can you please elaborate on the creative methods one can use to minimize capital outlay? I would like to get a 100% mortgage for a BTL property deal. with high yields i believe the rental income should cover rent in Dubai, is this the case?

Could one arrange with a mortgage provider to give them 20-25% ownership in the property as opposed to a deposit, the investor takes all the rent though, he pays the full (100%) mortgage, but the bank is secured as they own 20-25% of the property but get mortgage payments for 100%. this way they really benefit and the investor will have a good starting point with a 100% mortgage? Then in a year or so, maybe the investor can acquire the remaining 20-25% at prevailing market prices.

Does this idea make any sense, would it be considered in Dubai?

[jamesww]

Werhop,

The scenario you discuss is highly unlikely right now as banks are really tightening up. The best you will get is a 10% BTL right now, however, if you do not own a second property you can purchase a second home with as little as 5% with some lenders.

[VERGIS92]

Originally Posted by yogesh

Trying to work out if there is any law which states you must go with a mortgage on the basis of what you want to do with your property.

For example do I have to go with a buy to let mortgage if I want to buy a property knowing I will eventually want to rent/let it or can I go with a regular mortgage and let it anyhow?

Without a buy to let mortgage am I still eligible to be able to get cover for rent guarantee?

rent is no guaranty in any way, I suggest you buy a property from a proven
contructor-let-manager and get better results,
rental of holiday properties is difficult to do on your own,
a professional office can rent out the property for high rates but also charge
30%!

another factor to look into is what currency to take the mortgage on,
this gets too complicated for the average 'Joe' but here in greece all
sophisticated investors lay out a mortgage plan, keep on remortgaging
every five years and borrow on a foreign currency which is expected
to devaluate against euro and also has much lower base rate,
that's how well informed investors end up reducing their outstanding loan
amount