Buy to Let Advice Needed

holly876dog

My OH and I are thinking of going into the BTL market and wondered if anyone has any advice/suggestions on how to go about getting ball rolling and what are the bext ways to go about this.
Any experienced landlords out there to help.......
Can we remortgage our current property to buy or do we need BTL mortgage, these have higher rates?
What sort of things should we put into contract, do we need solicitor or can we use same solictor when we buy?
Would etstate agents be first port of call for advice/rental market?
Do we pay estate agents fees if we are only buying?
We would have a high LTV if we had to get BTL mortgage, if we remortgaged we would have <75% LTV, can we benefit from the equity in current property?
What are the general pitfalls of BTL?
Had a look on some calculators and rent would just say cover IO mortgage if we had to get BTL, is this a real worry?
Any other considerations?
Any help appreciated?
Thx
xx

katyp

Not so much advice, just to say that we're in the same boat as you.
We are funding a buy-to-let by using a buy-to-let mortgage (5.19%), and the deposit from our savings.
I don't know if you could remortgage your house or not. We could have done this, but we have a One Account, which I believe is more flexible than most mortgages.
If you decide to take a seperate mortgage, you will probably need at least 15% deposit, and the mortgage company would want your rent to cover at least 130% of the monthly interest changes.
Estate agents are a good place to start, but remember that they are in the business of selling houses, so their advice is not impartial. It's better to do your research yourself, and speak to a couple of lettings agents. If you buy, you will not have to pay estate agents' fees.
As for solicitors and drawing up tenancy agreement, I haven't got that far yet!
I've just concentrated in researching the process of buying a property before I got bogged down in detail about actually letting it.

Jo_anne_2

We bought a BTL last year, which we financed by taking a further advance on our mortgage. We were advised to do this as the interest rates available were much lower than for a BTL mortgage. Before taking the plunge, I did a lot of research by talking to estate agents and letting agents from different areas and speaking to other landlords. I found that there was a big difference in purchase prices and rental income and demand for rental property in different areas, this is something you need to consider carefully. For example, property in my local area is more expensive to buy and rents for less than in the town we finally decided to buy in. So far I haven't encountered any pitfalls (touch wood) and the tenants have been paying the rent and taking care of the property well. Remember, you are in a strong position as an investment buyer and can negotiate a good price on a property, but make sure it is the right property for you.

Meeten

holly876dog wrote:

My OH and I are thinking of going into the BTL market and wondered if anyone has any advice/suggestions on how to go about getting ball rolling and what are the bext ways to go about this.
Any experienced landlords out there to help.......

Can we remortgage our current property to buy or do we need BTL mortgage, these have higher rates?

you can remortgage your current place, but that will be used for a deposit, you cannot add the BTL place on the current mortgage (enless there are some new innovative products that I am unaware of)

What sort of things should we put into contract, do we need solicitor or can we use same solictor when we buy?

there should be no further work to be done - but the mortgage lender will haveto know that it is a BTL that you are going for - nowt wrong with letting your solicitor know your plans. SOme flats do not allow sub-letting and this could hinder any potential letting !!

Would etstate agents be first port of call for advice/rental market?

I think that the best advice i learnt, and followed out was to put yourselve in the shoes of a potential letter and visit EA / letting agencies in the area that you are interested in. Aks LOADS of Q's - as to how long the place has been vacant, what offer the landlord will take (not v often do they pay the full asking), see what terms they put down, etc....

Do we pay estate agents fees if we are only buying?

there should be no additional charges. same as buying a regular residential place.

We would have a high LTV if we had to get BTL mortgage, if we remortgaged we would have <75% LTV, can we benefit from the equity in current property?

by decreasing the borrowing, you show the lender that there is a higher deposit and the risk they have is reduced - which equates to a lower interest rate. In many BTL there are requirements on the % of deposit and rental income .... check on line, or with a FA.

What are the general pitfalls of BTL?

where to start ?? how about vacany - how long can you afford for the place to be empty, high agency fees (10-15% + VAT), more properties coming on the market, certificates for electricity and gas checks, non payment of rent, costs of repairs, ......

Had a look on some calculators and rent would just say cover IO mortgage if we had to get BTL, is this a real worry?
Any other considerations?
Any help appreciated?
not knocking your idea, but do suggest that you do lots of research and carefully consider whether this is the right time to enter the market. i am no expert in the market, but i do know that there are some areas that still show value, where as others are looking stagnant. as long as the price you pay and the rent you receive make the books add up, then you are 1/2 way there. be prepared to bargain hard with rental agencies, and search for the mortgage that suits you.

Good luck!