Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Whitt85
    • By Whitt85 12th Sep 17, 8:18 AM
    • 2Posts
    • 0Thanks
    Whitt85
    Buy to let deposit?
    • #1
    • 12th Sep 17, 8:18 AM
    Buy to let deposit? 12th Sep 17 at 8:18 AM
    I'm about to come into 50k.

    My husband and I have a £313k mortgage on our £700k house. We are fine financially so don't need to reduce monthly payments etc.

    We are deciding how best to spend the 50k. We are thinking about a buy to let property. Is this worthwhile these days what with all the stamp duty additional costs etc etc?? What percentage deposit would we need to get a B2L mortgage?
Page 1
    • Whitt85
    • By Whitt85 12th Sep 17, 8:19 AM
    • 2 Posts
    • 0 Thanks
    Whitt85
    • #2
    • 12th Sep 17, 8:19 AM
    • #2
    • 12th Sep 17, 8:19 AM
    Or would we be better placed to pay it off our current mortgage?
    • kingstreet
    • By kingstreet 12th Sep 17, 8:31 AM
    • 32,213 Posts
    • 17,252 Thanks
    kingstreet
    • #3
    • 12th Sep 17, 8:31 AM
    • #3
    • 12th Sep 17, 8:31 AM
    Min 25% deposit as long as the potential rental income is 145% of the monthly mortgage interest assuming a rate of 5.5%.

    How much do you want to be a landlord against the backdrop you have described?

    Paying it off mortgage v buying an asset? No way to answer without significantly more information. Discuss with independent broker to build a bigger picture.
    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.
    • Lilla D
    • By Lilla D 12th Sep 17, 9:43 AM
    • 316 Posts
    • 161 Thanks
    Lilla D
    • #4
    • 12th Sep 17, 9:43 AM
    • #4
    • 12th Sep 17, 9:43 AM
    I agree with Kingstreet that it's not a simple question of buying apples or pears. Ultimately it's down to your individual preference including risk taking, time for dealing with buying and managing a property, dealing with the tax/accounting side of things, even if you employ a letting agent and let them run wild with any AST they propose and use their suggested maintenance people and get an accountant to do your tax returns, etc. BTL is a longer term investment strategy, so consider what your plans are.

    Yes, there are lenders who can accept less than 25% deposit and/or calculate with a more lenient stress test, but without knowing your background and the property you're looking to buy, the above is the safest guideline one can give on this forum. If you speak to a broker, they'll be able to discuss it with you further.
    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.
    • wavelets
    • By wavelets 12th Sep 17, 10:07 AM
    • 158 Posts
    • 45 Thanks
    wavelets
    • #5
    • 12th Sep 17, 10:07 AM
    • #5
    • 12th Sep 17, 10:07 AM
    Do you want to set up a business as a landlord?
    Do you have the time to manage the business, all the risks, liabilities and potential rewards associated with running a business?

    If not, why don't you invest it and let others do all the work?
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,960Posts Today

8,214Users online

Martin's Twitter