UK Landlord Forum / Life

Hi all,

I'm a first time buyer and first time landlord, and have just invested in two new build flats. I have put down £47.5k on each as a deposit and am looking to fund the remaining £42.5k for each flat through mortgages. However, I'm struggling to find lenders that will provide buy to let mortgages to first time buyers.

The most attractive deal I've found was Virgin Money with a 2 year fix at 2.69%, 2.5% of loan value as fees and £750 cash back. However it looks like they are refusing to lend to me as the flats are in a tower block that is 9 stories high, and they refuse to lend on any building over 5 stories (why?!).

The next best deal I can find is Natwest, but it's going to end up costing me c.£1,600 more over the fixed term.

Can anyone recommend any other lenders that would be suitable? It's very difficult to find lenders through mortgage tables or comparison websites as many deals look attractive, but often when I actually dig into the criteria there will be something small that renders me ineligible.

Any help appreciated.

Thanks
Ryan

And there are mortgages only available through mortgage brokers that you won't find on comparison websites etc.

Go to a broker pay them a fee to do what you want.

www.lcplc.co.uk

I used these brokers recently, they were okay.

Those rates you quoted seem fine to me, I can't really see what the issue with them is.

£1000 a loan arrangement fee is pretty standard I would think.

Always best to check though!

Thanks for the advice guys. I agree that the rates above are decent, the issue is that they won't lend to me!

Use a broker like the one above.

Saying that you would pay £1600 more over the fixed term against a product that you cant get, I am sorry to say, is at best misguided and at worst slightly daft.

In that if you don't qualify then, the price is irrelevant, the price  is for the risk they want, and if you are not that risk, then you cant have that price! Simples!

It may be I think that you would be better putting less down, maybe paying a bit more, and keeping your cash for that next big deal round the corner, i.e. rather than put down 55% deposit, and pay say 3.5%, you may be able to put down 25% deposit and still pay 3.5%, meaning you could keep 45k in the bank at 1.5%, meaning you are paying only 3.15% actual net......I lost myself then for a moment! Sorry. I know what I mean!

Haha yeah no worries, I'm following you, unfortunately not an option though as the investment required the 47.5k cash up front to facilitate an exchange of contracts, and the remaining is payable upon completion of the conversion (it's an office block being converted into flats). Slightly annoying to have to put down so much but hopefully in a couple of years I can remortgage to release equity from the flats, which should be worth significantly more than I paid for them now.

Again thanks for the advice.