starting out in property investment and no accounts!!

[ross]

hi,
i think i have a uniqe situation , im self employed less than one year , no accounts.
i own a house worth 70-90 000 ,which is rented out , and i can stump up a 20,000 cash deposit.
iv been offered a buy to let remortgage at 4.2% and the rest with a major bank at 3.8 % this all through a good registered financial services company,

point is am i getting a good deal and can i get a better deal???

[brian]

If you can get a BTL mortgage from a major bank with no accounts, that's pretty impressive.

I guess having assets is obviously good, but 3.8% is a pretty competitive rate.

[ross]

yes it is impressive i just think theres alot of deals out there youv just got to find these, iv tried alot of brokers and have been told by some i cant get a mortgage so you cant beleive what they say.

[mortgage_advisor]

Any broker who tells you that you can't get a BTL mortgage without accounts doesn't have very much industry knowledge. As for the rate, that's very low. But I don't quite understand from your post how much you are raising and on what property and for what purpose.

[Ryan Forbes]

I would agree it seems good especially with No Accounts.

[ross]

yes iv ust ealsed i can get a btl mortgage and the interest rate is a bit higher.

im mortgageing to get into property investment mainly to raise cash first so renovate and sell , i cant get a mortgage without early repayment penalty , although they will pass the mortgage onto another property in 3 months time limit, is that good?can i get a mortgage without penalty and reasonble interest rate?

[mortgage_advisor]

With BTL it can be difficult to get a mortgage with no ERC, and considering that the pool of lenders you have to choose from is reduced due to your work situation makes it highly unlikely you are going to get one.

The likes of Northern Rock will do a mortgage with is completely flexible that you can overpay into down to the last pound and then borrow back the funds as and when it suits you, but if you pay that last pound off you effectively clear the mortgagae at which point an ERC becomes payable. It is also portable so you can move it to another property. May be helpful as if you are borrowing extra to do work to the property it means you can draw it down as you need it and avoid paying interest until you actually need the cash.

[ross]

hi,
ok thanks , i will look at what northern rock have to offer.