BTL cashback mortgages

blushingbride_3

Hi
Does anyone have experience of these?

My friend has a company doing property investment & i want to get some BTL to provide myself with some provisions for the future as i plan to be a SAHM in 3 yrs & hubby will be the only one working.

She is about to complete on some properties where we would need a deposit of £10000 & we would get cashback on completion so i could borrow some money from my dad rather than cashing in on my isa's

What do i need to look out for with BTL? my only worry is the times when we dont have tentants, however we do have savings & some income left a month to cover mortgage payments.

any advice would be greatly appreciated

thanks

:money:

VIGILANT22

Please, please, please........avoid

blushingbride_3

why do you say that?

VIGILANT22

I could tell you many many sad stories of "friends" roped into these get rich propety investment schemes....I can tell by your post your knowledge on this is limited...you have to be pretty clued up too know what you're doing....Keep yr money pls.....it's more safe with you....also bookmark my post if you go ahead with the scheme!....somehow I think you would look back and wish you had listened

blushingbride_3

yes but you are saying avoid but not telling me why?
This is a friend i trust & i am not going to go into it until i am 100% sure which is why i have asked for advice.
not for someone to say dont without reason

VIGILANT22

Ok, first of all my post would be too long for to explain to you.
Also you don't receive advice here it is only opinion.
For advice, please make an appointment with a whole of market mortage advisor (it wont cost you anything) and run your idea past them....It's better to speak to people face to face...AND DON'T use the advisor your friend uses....

Conrad

You don't explain where this mysterious cashback is comming from?

Your freind once had an idea spring into her mind. Imagine nher thought process;

1) If I expend 'x' time and effort on a scheme I need to make 'x' in return.

2) I will make my return from others (ie you)


You do not need a 'freind' to get into B2L.

My hunch based on long experinece is that this cashback will be bundled up in somemsort of over pricing of the property.

RULE ONE IN BUSINESS;

Trust no one. It's incredibly neave to trust people. Even loving couples can one day be bitter combatants despite thier vows and so on.

blushingbride_3

hi yes thank you i understand what you are saying.
when i say i trust my friend i mean i dont think she will stich me up, however i also know that i would never do anything without careful research hense asking on hear etc, i am certainly not so niave that i would sign up for something straight away.
hubby & i know of family who have done similar so we do have some experience of these sort of schemes.

of course i understand that the cashback is coming off the mortgage etc but it means that there is access to money for a second or third property.

This is not a get rich quick idea, this is a way of investing, having property which we will keep & rent of a long period of time, we wont be planning on selling these for a long time the are solely for let & so any cashback will be used to further this.

I wont be deciding until i have done lots of research

thanks for replies & any other advice/ opinions greatly appreciated

Conrad

There is no such thing as a B2L mortgage cashback.

So who is giving you thier hard earned cash in the form of a cashback?

blushingbride_3

maybe its that you get a mortgage of a higher value than the house? this is what i am asking or trying to get advice about.

I think that my friend negotiates a wholesale rate on houses etc for investors

Conrad

You freind does not negotiate wholesale deals. I saw so many of these fantom schemes pre credit crunch. Lots of people have been burned.

Look, I deal with millionaire investors that are very shrewd and well know in the local property market. Even they cannot negotiate special wholesale deals.

Lenders are very very wary of any and all 'schemes' now anyway, and tend to lend on purchase price, not a supposed higher value.

Tell me the lender involved and I'll check out whether it's doable.