Negativity abounds in certain areas of the lettings market as the tenant fee ban comes into force in a few days time, but lenders in the Buy to Let mortgage arena either haven’t heard about the ban or they don’t think it will affect their customers.
Which? Mortgages Advisers has published a report on high value mortgages for positive-thinking landlord investors.
The report finds that it is possible to buy a high-value property and rent it out to anyone who can afford it, be it a household name, an international tycoon or Ariana Grande popping over from Beverley Hills for a party or two.
The rents that are being asked – and presumably achieved – are eye-watering. Foxtons offer a very smart house in South Kensington for £86,667 pcm. Glentree offers a seven-bed mansion in Highgate for a rather more palatable £43,333pcm
These are not typographical errors. In fact Rightmove has 300 properties with rents over £40,000 pcm.
Clearly, most of these pads won’t be owned by a buy-to-let landlord, but it makes you wonder how far a professional landlord could go. Wonder no more. Metro Bank and Bank of China both offer buy-to-let landlords maximum loans of £5m at up to 60% LTV. So a high-flying landlord could buy an £8m ‘house’ if they have £3m as a deposit.
The slightly more cautious investor could snap up a Kent Reliance loans of up to £3m at 80% max LTV, meaning a landlord can buy a property worth up to £3.75m with a £750,000 deposit.
Which? Has just added a handy table (below) which shows the maximum loan policies operated by lenders at popular LTVs, along with the most expensive property price a confident landlord could theoretically purchase.