Bram Vis answers your mortgage questions
A client has a flat and wants to rent it out. How can they raise money against this and for how much?
This is quite straight-forward really for a specialist lender. The amount of rent you receive will determine how much you can borrow. Different lenders may vary a little bit in terms of exactly how much they will lend – as every lender has an underwriting committee – but they won't be that far apart. That is the key, not the value of the property which will confirm the LTV as you need this, but the income instead, the rental income only.
Once you have the rental income, then you can see the maximum that can be borrowed by any lender – and thus, the difference is the deposit required.
The Lowest Deposit - 25% of the value of the property. The Highest Deposit - It depends on the actual amount of the rent. 40-45% is quite common these days.
Please don't hesitate to call me directly on 020 7504 1090 or 01983 642 643 if you would like to talk, this or a similar scenario, through with me.
The information contained in this answer is for illustration purposes only and does not contain all the details required and should not be used as a personal recommendation without them. Do contact Bram if you would like an entirely free consultation to talk through your requirements, exact circumstances and best mortgage options.