Mortgage for Buy to Let investment while renting

bigmaz
bigmaz Posts: 1,241 Forumite
First Post First Anniversary Combo Breaker
in Mortgages & endowments
Hi guys, I currently rent my flat. I do this because its a cheaper way to live in the type of flat I want, I could not afford a mortgage on it.

I was wondering if anyone else in my situation has got a smaller mortgage and bought a cheap flat with the view of renting it out? Thought it might be a good investment idea, and getting on the property ladder. Any views?

Comments

  • Lilla_D
    Lilla_D Posts: 359 Forumite
    First Anniversary
    If I understand correctly, you're a first time buyer looking to become a first time landlord. The number of potential mortgage lenders can be counted on one hand, but dependent on further details of your situation (e.g. age, income, outgoings, type of flat you'd buy, where the flat is, potential rental income etc etc etc) this number may reduce further. So yes, in theory it's possible, but in practice it will come down to the details of the case.

    However, before you go looking for a property, you may also want to talk to an accountant or tax advisor about the income and tax implications of becoming a landlord.
    I am a Mortgage Broker
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  • bigmaz
    bigmaz Posts: 1,241 Forumite
    First Post First Anniversary Combo Breaker
    Lilla_D wrote: »
    If I understand correctly, you're a first time buyer looking to become a first time landlord. The number of potential mortgage lenders can be counted on one hand, but dependent on further details of your situation (e.g. age, income, outgoings, type of flat you'd buy, where the flat is, potential rental income etc etc etc) this number may reduce further. So yes, in theory it's possible, but in practice it will come down to the details of the case.

    However, before you go looking for a property, you may also want to talk to an accountant or tax advisor about the income and tax implications of becoming a landlord.

    Yeah, maybe not a great idea.... Just looking at investment ideas, property is always the first on the list....
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