Trying to work out if there is any law which states you must go with a mortgage on the basis of what you want to do with your property.

For example do I have to go with a buy to let mortgage if I want to buy a property knowing I will eventually want to rent/let it or can I go with a regular mortgage and let it anyhow?

Without a buy to let mortgage am I still eligible to be able to get cover for rent guarantee?

is there such a thing from banks as cover for rent guarantee????dont think so
they can insure your life and nothing else

You can get upto 100% mortgage as long as you can prove to the bank that it is your "primary" residnece.

otherwise you are limited to the 85% BTL one

You may want to consider

http://www.totallyproperty.com/ifa/2...g-buy-one.html

no bank can give rent guarantee.If somebody doesn't have money to pay rent, bank can't do anything.

I think you can only get one residential mortgage and all the others need to be BTL ones.

Rishi

There are lenders that will do 90% BTL mortgages and ones that still accept 5% gifted deposits.

Just need to use a creative technique to minimise your cash outlay.

Hi, can you please elaborate on the creative methods one can use to minimize capital outlay? I would like to get a 100% mortgage for a BTL property deal. with high yields i believe the rental income should cover rent in Dubai, is this the case?

Could one arrange with a mortgage provider to give them 20-25% ownership in the property as opposed to a deposit, the investor takes all the rent though, he pays the full (100%) mortgage, but the bank is secured as they own 20-25% of the property but get mortgage payments for 100%. this way they really benefit and the investor will have a good starting point with a 100% mortgage? Then in a year or so, maybe the investor can acquire the remaining 20-25% at prevailing market prices.

Does this idea make any sense, would it be considered in Dubai?

Werhop,

The scenario you discuss is highly unlikely right now as banks are really tightening up. The best you will get is a 10% BTL right now, however, if you do not own a second property you can purchase a second home with as little as 5% with some lenders.