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Buying a 2nd house for letting - mortgage question
mikeyw
Posts: 227 Forumite
Guys,
Total novice to the letting game but have a £350K house with an £80K mortgage.
How straightforward is it to get an interest only mortgage say for £200K against the equity tied up in my current house ?
Is this the most sensible way to purchase a 2nd house for rental income ?
What sort of occupancy levels do people work on ? - I live in Harrogate where rental demand is pretty high. Is 10months per annum on average unreasonable ?
What risks are there ? - I guess as long as the value of the property increases by the amount of the annual mortgage interest total you can't really fail even if it stood unoccupied ?
Do most people on here let through agencies or do it themselves ? I guess the agency route is safest for the first time.
TIA,
Mike.
Total novice to the letting game but have a £350K house with an £80K mortgage.
How straightforward is it to get an interest only mortgage say for £200K against the equity tied up in my current house ?
Is this the most sensible way to purchase a 2nd house for rental income ?
What sort of occupancy levels do people work on ? - I live in Harrogate where rental demand is pretty high. Is 10months per annum on average unreasonable ?
What risks are there ? - I guess as long as the value of the property increases by the amount of the annual mortgage interest total you can't really fail even if it stood unoccupied ?
Do most people on here let through agencies or do it themselves ? I guess the agency route is safest for the first time.
TIA,
Mike.
0
Comments
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deja vu happening to me.
I am sure I read this post somewhere with answers
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I've already had deja-vu :rolleyes:Tassotti wrote:deja vu happening to me....A house isn't a home without a cat.
Those are my principles. If you don't like them, I have others.
I have writer's block - I can't begin to tell you about it.
You told me again you preferred handsome men but for me you would make an exception.
It's a recession when your neighbour loses his job; it's a depression when you lose yours.0 -
mikeyw wrote:How straightforward is it to get an interest only mortgage say for £200K against the equity tied up in my current house ?
Should be easy enough but...Is this the most sensible way to purchase a 2nd house for rental income ?
No. Better to borrow as much as possible on rented property to offset the interest against tax liability of rent.
Probably safe to go on 10 months. I average over 11 months at the moment.What sort of occupancy levels do people work on ? - I live in Harrogate where rental demand is pretty high. Is 10months per annum on average unreasonable ?
1. Major risk - over-estimating future property value!What risks are there ? - I guess as long as the value of the property increases by the amount of the annual mortgage interest total you can't really fail even if it stood unoccupied ?
2. Failure to pay rent.
3. Damage.
4. Bird flu wiping out half of population leaving housing and rental markets as dead as a dodo
Personally, I let privately but I would expect the majority to let through agencies. My BTL cost £15.5k (yes £15, 500) in 2001. Rental is £80 pw.Do most people on here let through agencies or do it themselves ? I guess the agency route is safest for the first time.
Good luck
GGThere are 10 types of people in this world. Those who understand binary and those that don't.0
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