want to re mortgage my flat, to buy another btl

ukstocks5

i want to re mortgage my flat which is fully paid for and worth about £65000 , to buy another flat for use as a buy to let but i have no income only benefits at the moment, so i would like to know how to go about this, i am very new to all this so any help would be great, thankyou

edgex

:huh:

re-mortgage?
in this current financial climate?!

buy-to-let?
in this current financial climate?!
rental rates are dropping, total rentals are dropping

no income?
= no mortgage

ukstocks5

what current climate, interest are now low for repayments got tennant lined up to rent at about £90 per week, next property to cost about £45000. dont these figures add up, i am extremely new to this so all advice is valuable to me, thanks

PasturesNew

If you are on benefits how would you pay the mortgage if the tenant didn't move in? Or when they moved out if there was a void? What if in a year the rent had dropped to being £100 under what the mortgage is? The boiler blows up? You've not had a tenant for a month and the gas certificate's due and the insurance?

There are 1000 reasons why this wouldn't be a clever move.

Trollfever

A guide from HMR&C on starting a new business:

http://www.hmrc.gov.uk/startingup/index.htm

.

paulfaz

got to be a wind up?:D

dimbo61

plus you have to declare any income from renting out a property to the benefits people.
might well effect your benefits

edgex

You have NO income, therefore you will not get a mortgage on your current flat.

I dont think anyone is doing buy-to-let mortgages any more either, so you would not get a mortgage on the new flat.

danny69

Sell your flat for 65k, buy this other one for 45k, have 20k in your hand, job done NEXT!

dimbo61

Having over £6k in savings can effect benefits so £20k means no benefits !

LutonBloke

Hi, My first post. I am a BTL'r but probably would not start now! My question to you would be if it is a good deal for this one why not buy 5..... Apart from the cost and difficulty at the moment of raising 2 mortgages for first one and establishing access to a contingency for voids and repairs, initially £90/week sounds an OK return from a £45000 investment. Check out your real costs though. In addition to letting agency fees, most flats have ground rent and maintenance/community charges. All these will rise with inflation and continually eat into rent. As the rent margin is not great, an interest only mortgage is normally the option. So you are then left with future house price rises for growth! Property prices optimistically might have doubled in another 15 years. That may be will give you £45000 (of taxable gains) for 15 years risk and effort. Is that what you want? Of course with 5......