Let to Buy advice etc...

pana37

does any one specialise or do these types of mortgages, ive been offered £800 guaranteed rent for three years from repuitable company who works with the council.
My house is mortgage free worth around £270k i earn around £30k and mrs has a part time job on temp contract £9k.
what are my options i would love to keep this house remortage it and rent it out.
i want to buy a bigger house and use the remortage as a big desposit.
1. How much would you think i could borrow on the house.
2. How much would you think i could borrow based on our earnings.
3. is this just a pipe dream or is this possible?

any other advice or tips greatly appreaciated

thanks

pana37

Hi all again, very suprised with no responses at all? something i said?

theartfullodger

ive been offered £800 guaranteed rent for three years from repuitable company who works with the council.

- So, is that one of these "get-rich-quick" merchants who promise the earth and then disappear???

If they offer £800 (presumably per month??) "guaranteed" then chances are you'd get more renting direct....

My house is mortgage free worth around £270k

- Hmmnn.. I'd not even think about accepting £800/mo for a property work (allegedly) £270k

Talk to a few (yellow pages??) mortgage brokers & letting agents & describe what you want - both mortgage (what you've outlined may be possible) and to get an idea on realistic rental income...

But, as you will know, last time the Conservatives came to power very shortly afterwards interest rates his 17% (s-e-v-e-n-t-e-e-n) and stayed around the 10's for about a decade...

Happy days!!

(And unemployment went up, as did the crime rate...)

Cheers!

Lodger

PS...

ONLY rent your property out if you can cope with the financial & emotional agrro of the "Tenant from hell" who you can't get out for 9 months whilst you keep paying the mortgage etc./ etc... and legal fees (to get him out) and then he 'phones you Saturday 10:22 pm "Toilet's bust wodja gonna do..." "Sorry to hear that dear sir, when did this start" "Wodja goona do... wodja gonna do - dunno 3-4 weeks maybe,.,.. wossat gorra do 'wiv it??" "OK, I'll get my man to call you Monday 1st thing..." "Nah, you gorra fix it nah..>""""


(PS Yes, you have a legal requirement to fix the gentleman's toilet, notwithstanding his not having paid you for 7 months,.....")

If you are not sure you can cope, find another business to go into...

& there are many other costs incurred when renting: And do your numbers only assuming you can rent for 10 or each 12 months....

(Apologies to other readers for posting this advice yet again...)

Nosht

Or use a letting agent who will deal with all this hassle for you. That is what he is paid to do.!!!!!!!!!!!!!!!!!!


Regards,

N.

pana37

hi artfullodger ive been there done that back 1988 with a dodgy estate agent, they went bankrupt etc.. so i wont be going through that again!!! thats for sure.

i am going to use a reputable agent as i mentioned before my friend has used them for about 5 years with no issues, they will also manage to property if anything needs doing.
my main issue is wether i can get a let to buy mortgage, id rather get a bit less regular rent than higher rent for a few months.

Fire_Fox

pana37 wrote: »

does any one specialise or do these types of mortgages, ive been offered £800 guaranteed rent for three years from repuitable company who works with the council.
My house is mortgage free worth around £270k i earn around £30k and mrs has a part time job on temp contract £9k.
what are my options i would love to keep this house remortage it and rent it out.
i want to buy a bigger house and use the remortage as a big desposit.
1. How much would you think i could borrow on the house.
2. How much would you think i could borrow based on our earnings.
3. is this just a pipe dream or is this possible?

any other advice or tips greatly appreaciated

thanks

Only a bank can tell you what they are prepared to lend and on what criteria, make an appointment and get a mortgage in principle. Unlikely your wife's earnings will be taken into consideration in the current climate, but any debts (overdraft, credit card, car finance) will. Is your house actually worth £270K based on land registry sold prices for your street? Have you factored in income tax on the rent?

BitterAndTwisted

Oh, you will be able to get a buy-to-let mortgage especially if you own a property outright for that sort value but it will be at higher interest-rate than a normal one. The real question is whether you should but that all depends on the risks you are willing to take and whether you will still be able to afford your mortgage payments if you have a defaulting tenant who signs up for a 12-month let and you never receive a penny in rent from them.

mickybro

Birmingham Midshires will do up to 75% remortgage of your property, either a repayment type mortgage or an interest only mortgage, you can deal with them direct if you want to, just telephone them.

mickybro

If you have a defaulting tenant when they are 2 months in arrears you can take them to court via the goverments pcol service search for it online, it is all done online and it is a fast track service . The tenants are served with the notices via this service and you can reclaim arrears at the same time.

VIGILANT22

Fire_Fox wrote: »

Only a bank can tell you what they are prepared to lend and on what criteria, make an appointment and get a mortgage in principle. Unlikely your wife's earnings will be taken into consideration in the current climate, but any debts (overdraft, credit card, car finance) will. Is your house actually worth £270K based on land registry sold prices for your street? Have you factored in income tax on the rent?

Fire Fox
Why would you suggest going to a bank....Surelypeople want the best available option therefore you would not restrict yourself in going to a bank who can only offer only their own products....You need to speak to a whole of market adviser....If it is a Let to Buy they will assess your overall circumstances to see if you meet criteria.....as this type of lending has changed greatly over the years..

BitterAndTwisted

Anyone who accepts a complete stranger's advice to the letter about anything whatsoever on a public message-board will only have themselves to blame when or if the !!!!!! hits the fan.

I daresay FF's advice really meant "lender" rather than "bank" but I'm not a mind-reader and neither are you. Now, if FireFox was a professional adviser and was charging good money for said advice I would agree with you, but she's not