I am not sure whether loans of up to £50k are still widely available for this purpose. It depends on your financial status.

Some relatives of mine, invested in a number of such properties, after the last recession. They obtained a business loan, working with one of the main high street banks, that they held one of their accounts with.

You may therefore wish to contact your bank first to see if they are willing to lend.

As a by the way. Just because you bought a property 25% below its previous market value does not mean that banks will look upon this, as you holding 25% equity. As far as they are concerned the property is only worth the price you paid for it.

Yes for a buy to let mortgage, but i'm looking at a reposession property and they do go very cheap so the equity in the property probably would be around the 25% mark. I do not have a large deposit of around 25% so thats why im looking at a loan.

Thanks you for your help

Have a look at the MS page on Mortgages.

http://www.moneysupermarket.com/mortgages/

You will note that you will need between 25%-40% deposit, as lenders will only provide a maximum of 75% against the properties value. Then with the NatWest BTL Mortgage shown there is an arrangement fee of £2k.

If you have the relevant funds available, you would be best to go to a local independent Mortgage Broker, who will look at what is available.

Hi, i have been thinking about getting a loan to purchase a property that i intend to let out, i have no equity in my own home/mortgage, so a loan looks like the way forward. I will be looking say around 50k ish, making long term payments to get on my feet then reducing the loan time by increasing the payments in the future. However, i cannot put a bid in for a property unless i have proof that i am in a financial position to purchase! So i obvisoully need a loan agreed, but will it be difficult to get this loan without a property to secure it against? One more question, it may end up that the rent i recieve justs covers the monthly payments on the loan, will i have to pay any tax if im not actually making a 'profit'?

Thanks