Buy to let mortgage, but not yet

cannyClaire

I'm looking to buy a small house to rent out but the one I can afford needs a bit of work doing to it, that I am willing to do where possible, and in my spare time. Is it above board to buy the property with a normal mortgage to enable me to carry out the work which needs doing to it, then switching to a buy to let mortgage when the property is ready to rent out?

I do not have a mortgage on my own house but the land registry do not have documents to say it is paid off, will this affect my ability to get another mortgage? I do not want to remortgage my own property to buy the smaller one, but would this be best?

brit1234

You going to have to get 25-35% deposit now for buy to let. Your also need to buy a cheap property that generates at least 10% profit a month after mortgage payments from rent and other fees. Also you a likely to loose on capital apreciation as the property value will fall over the next few years as interest rates go up. Maybe in about 10 years your capital apreciation may improve.

cannyClaire

Thanks for your reply.

I'm not intending to sell the property once I buy it. I want it to provide an income, eventually.

I have had quotes for repayments on a fixed BTL mortgage of £220 pcm and rent will be around £500-£550 pcm, so I think there's more than 10% there (plenty for the taxman anyway).