Buy to let mortgage

CHIHUAHUA

Hi everyone - my partner and i have lived in my house for the last 12 years and rent her terraced house out - she is just about to pay her mortgage off and will continue to let her house. We are wondering if she or we could buy another terraced house to let but are unsure how to go about borrowing the money to do so. We are both working and would be looking to buy a terrace of a similar value to her existing one.
I'm hoping to pay off my mortgage in the next 12 months too. (thanks to loads of help from this site!)
If this is possible would we need a large deposit? or could we use the equity in her house in some way? - should she pay the mortgage off (about 6K) or remortgage to buy the new house?
She doesn't currently have a Buy to let mortgage as her lender agreed to her letting her house when she moved in with me.
We realise that there would be cap gains tax issues in the future but wouldn't be planning on selling it for several years until we retire.
All advice much appreciated.
CHI

theartfullodger

1. Raise B2L mortgage on current rented=out=house. You now have deposit.
2. Find next house to rent out that is for sale.
3. Make offer & apply for 2nd B2L mortgage
4. Get offered mortgage, buy 3rd house, 2nd B2L mort,
5. Hope house prices dinnae fall any further.!!!!!!!!!!!!!!!!!!.


Cheers!

Lodger

PS You really really WANT a mortgage (B2L) or rental houses. That way you make less profit on the business so report less income to HMRC & have shed-loads of money in't Bank..

CHIHUAHUA

Thanks for your help :T
So do you think we should be looking for a 25% deposit or could we get a BTL mortgage with a smaller amount?

Thanks again

CHI

FoxtonsRIP

buytolet mortgages are what started this financial mess in the first place. They should be outlawed.

theartfullodger

CHIHUAHUA wrote: »

Thanks for your help :T
So do you think we should be looking for a 25% deposit or could we get a BTL mortgage with a smaller amount?

Thanks again

CHI

Yup, plan on 25-30% and remember there will be other fees & legal charges & also make sure you have got some money put by in case you get the "Tenant from Hell".

Talk to a couple of brokers - google Buy-to-let - and see what they say.

Cheers!

Lodger