Mortgages are available up to 85% Loan to Value (LTV) for Purchase or Remortgage. 85% LTV Buy to Let Mortgages are the highest LTV you can get as a property investor. That's just a deposit of 15% of the property value.
Landlords with larger deposits can enjoy lower mortgage rates including lower fees. With the minimum deposit is 15% of the property value (85% LTV), Compared to 20% of the property value (80% LTV) the mortgage rate can be from 2% higher.
The monthly rental amount can limit the maximum loan achievable and therefore requiring higher deposits. Our mortgage advisors can help you release equity from other properties to raise a deposit.
Loan to Value (LTV) is the mortgage amount percentage of the total value or purchase price. You can borrow up to 85% of the value of a Property.
As an example on a property worth £100,000. With an 85% LTV Mortgage you can borrow up to £85,000. That means just a deposit or equity of £15,000.
Mortgage Lenders consider 85% LTV as high risk giving us few options. The higher risk and fewer options are reflected in the mortgage rates and fees charged.
Whilst 85% LTV Mortgages are available. The maximum loan is still constrained by affordability, mainly the rent achievable.
Mortgages at 85 LTV are the highest property investors can obtain.
On purchases, you can buy a property with very little deposit.
On remortgages, you can raise capital from your property. Enabling you to use funds elsewhere such as a renovation or expanding your portfolio.
The affordability of a Buy-to-Let Mortgage is based on the rent that is achievable. It can be difficult for landlords to reach a rental stress test of 85% LTV.
Completing the mortgage on a Five Year Fix and/or Limited Company may open up more options. Our mortgage advisers will be able to guide you in this.
For illustrative purposes only. On a mortgage of £170,000 with the Kensington Product, you would require £974 rent and £1090 from KRBS.
The products available are for Personal Name or in a Limited Company Buy-to-Let if purchasing in a Special Purpose Vehicle (SPV). Trading Companies differ.
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