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  • FIRST POST
    • kteara
    • By kteara 11th Sep 17, 12:57 PM
    • 230Posts
    • 39Thanks
    kteara
    Can someone advise me on remortgage options?
    • #1
    • 11th Sep 17, 12:57 PM
    Can someone advise me on remortgage options? 11th Sep 17 at 12:57 PM
    Hi all,

    I'm at a point now where I want to get into the property market and want to know the best options available to me given my circumstances.
    • 23 Years Old
      20K per annum (will go up)
      30k savings
      200k equity in parents home

    I want a property just outside of London for the 200k mark to rent out.

    Has anyone done this before? Really, I'm just looking for information so I can get the ball rolling in this direction. I have been saving for a while and my parents are happy to use the equity in their home granted the numbers work out.
Page 1
    • Lokolo
    • By Lokolo 11th Sep 17, 1:18 PM
    • 19,820 Posts
    • 14,874 Thanks
    Lokolo
    • #2
    • 11th Sep 17, 1:18 PM
    • #2
    • 11th Sep 17, 1:18 PM
    For deposit you will need at least 25%. So on a £200k property you would need at least £50k + costs (stamp duty and solicitor costs).

    Do you currently own a property? If not, then that severely reduces chances of this. And again, if you don't, maybe consider purchasing a house and renting out a room. Income is then tax free (up to £7500 a year).
    • kingstreet
    • By kingstreet 11th Sep 17, 1:28 PM
    • 32,274 Posts
    • 17,315 Thanks
    kingstreet
    • #3
    • 11th Sep 17, 1:28 PM
    • #3
    • 11th Sep 17, 1:28 PM
    This is likely to be very difficult to achieve.

    The only lenders willing to entertain applications from non-homeowners test affordability for such applications as a residential.

    In this way they know the applicant wouldn't be going the BTL route as it would be affordable as a residential.

    With the new PRA rules with lenders also looking for the rental cover to be 145% of the monthly mortgage interest assuming an annual interest rate of 5.5%, life is becoming more difficult for landlords.

    Add to this the tax increases presently being introduced and the SDLT surcharge on second properties you really, really, really have to want to be a landlord and have a very robust financial plan.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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