BTL Advice

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  • mgarl10024
    mgarl10024 Posts: 643 Forumite
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    Will you manage the properties yourself? Factor in the addition time finding/vetting tenants, managing repairs, dealing with issues. As a rough guide, multiple the time you currently take by 3.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    cns06 wrote: »

    I am considering refinancing it to release £120k. Then take out 2 more £120k mortgages to buy 2 more £200k properties.


    What if the new lender doesn't like the source of the deposit, i.e. borrowed money?
  • cns06
    cns06 Posts: 299 Forumite
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    Thanks for the further advice. To give some specifics.

    My accountant is advising I form a LTD for the property side.
    The management of the properties would be done my myself. Tenannts and legals would be done by an agent I use for the current rental as they seem pretty good.
    The % of portfolio, hard to say exact numbers but right now 30% ish in property.
    1.25% is on CTL. My lender is happy to lend more money (its a non high street lender), however that said I might not stay with them if we do this.

    Like I said my other option is to buy another on its own, just trying to figure out which will be best in the long run though...

    I take on board the comments about a toppy market and I do think we are possibly going to see a slight fall in the market. I am in no rush to do this but if I do go ahead I am thinking in around 12 months.
  • Wobblydeb
    Wobblydeb Posts: 1,046 Forumite
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    :huh:
    cns06 wrote: »
    1.25% is on CTL. My lender is happy to lend more money (its a non high street lender), however that said I might not stay with them if we do this.
    I thought there was no mortgage on the existing rental property? :huh:
    I've got a plan so cunning you could put a tail on it and call it a weasel.
  • eskbanker
    eskbanker Posts: 31,034 Forumite
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    Wobblydeb wrote: »
    :huh:I thought there was no mortgage on the existing rental property? :huh:
    Presumably referring to this, although as you pointed out earlier there's no reason to believe that a BTL mortgage would be at the same or similar rate as one for a primary residence:
    cns06 wrote: »
    My own house is on capital repayment mortgage which is being overpaid.
  • jimjames
    jimjames Posts: 17,619 Forumite
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    cns06 wrote: »
    My own house is on capital repayment mortgage which is being overpaid.

    If you're prepared for the risk of BTL and investments and your rate is 1.25%, why would you want to over pay that mortgage? Surely it's better to put that money elsewhere when you can get a vastly better return on it?
    Remember the saying: if it looks too good to be true it almost certainly is.
  • cns06
    cns06 Posts: 299 Forumite
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    Wobblydeb wrote: »
    :huh:I thought there was no mortgage on the existing rental property? :huh:

    In my first post I said to keep things simple lets assume.....

    I was just trying to give basic numbers to see if anyone would be able to suggest a good way forward :beer:

    At the moment we are going to hold off and see where we are in another 12 months. The property market seems slow and we should be able to either buy 1 property next year cash or perhaps consider 2 with a 50% deposit on BTL. I was also interested to see BOE rates were held and I think this might be a good time to just hang back and watch. :)
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    cns06 wrote: »

    At the moment we are going to hold off and see where we are in another 12 months. The property market seems slow and we should be able to either buy 1 property next year cash or perhaps consider 2 with a 50% deposit on BTL. I was also interested to see BOE rates were held and I think this might be a good time to just hang back and watch. :)

    A good reason to perform the number crunching exercise anyway. Particularly if it's something you wish to pursue in the future. Then you can monitor your local market and wait for the stars to all align.
  • chucknorris
    chucknorris Posts: 10,786 Forumite
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    cns06 wrote: »
    In my first post I said to keep things simple lets assume.....

    I was just trying to give basic numbers to see if anyone would be able to suggest a good way forward :beer:

    At the moment we are going to hold off and see where we are in another 12 months. The property market seems slow and we should be able to either buy 1 property next year cash or perhaps consider 2 with a 50% deposit on BTL. I was also interested to see BOE rates were held and I think this might be a good time to just hang back and watch. :)

    Sorry, I don't mean to sound nasty, I really don't. But if you can't work out the figures and/or come to a conclusion yourself, don't do it.
    Chuck Norris can kill two stones with one birdThe only time Chuck Norris was wrong was when he thought he had made a mistakeChuck Norris puts the "laughter" in "manslaughter".I've started running again, after several injuries had forced me to stop
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