i have a buy to let prop want to sell buy another can i get a shared ownership prop on a buy to let mortgage
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katrobrich
1 year ago
Expert Financial Adviser Answer
Darren Smith
answered 1 year ago
in short, no.
BTL mortgages are not regulated by the FSA, shared ownership mortgages are.
in addition, shared ownership is designed to help people that cannot afford to buy outright and not to help property speculators build up a portfolio.
given that BTL loans are based on rental income, the cost of rent/mortgage on a shared ownership property would fail a BTL income test even if there were a lender willing to offer this option.
setting that aside, it is now possible for certain borrowers to get a BTL mortgage with a lower deposit of around 15% but the interest cost will be higher than the traditional 25% deposits that most BTL lenders insist on.
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BTL mortgages are not regulated by the FSA, shared ownership mortgages are.
in addition, shared ownership is designed to help people that cannot afford to buy outright and not to help property speculators build up a portfolio.
given that BTL loans are based on rental income, the cost of rent/mortgage on a shared ownership property would fail a BTL income test even if there were a lender willing to offer this option.
setting that aside, it is now possible for certain borrowers to get a BTL mortgage with a lower deposit of around 15% but the interest cost will be higher than the traditional 25% deposits that most BTL lenders insist on.