BTL or residential what type should I get?

dimbo61

If you want to buy a property to rent it out you need a BTL mortgage( with a 40% deposit) and if you want a property to live in you need a residential mortgage( with a 25% deposit).
If you buy a property with a residential mortgage and then decide to rent it out you need the permission of the lender and the proper landlord insurance, safety checks ( gas/elec), building regs, smoke alarm ETC.
Some lenders will allow you to rent out the property and some wont.

mingebag

dimbo61 wrote: »

If you want to buy a property to rent it out you need a BTL mortgage( with a 40% deposit) and if you want a property to live in you need a residential mortgage( with a 25% deposit).
If you buy a property with a residential mortgage and then decide to rent it out you need the permission of the lender and the proper landlord insurance, safety checks ( gas/elec), building regs, smoke alarm ETC.
Some lenders will allow you to rent out the property and some wont.

You can get BTL for 25%. Have you applied? Are you a first time buyer?
You can buy the flat as a ftb and rent it out. Now you must tell your lender you want to rent it out. Some will not have a problem, some will charge you £500 some will say No. In my experience most letting agencies do not look for proof of permission. I know plenty of people who have not told their banks. I would not recommend this though. If your tenant finds out that you don't have permission their AST becomes void and they can just leave.
Another word of advice just because it is a good rental area doesn't mean you will get tenants. Make sure you can afford a empty flat, strong rental area or not.

brit1234

Wutang wrote: »

I know mate - these stupid deposits are going to ruin this country!

I think they are a good thing personallly, what is bad is these artifically high house prices.

Deposits are big to protect against big forecast falls, it protects the lender. Buy to let mortgages have higher deposits due to the higher incidence of fraud and failure.

Thrugelmir

theAnarchist wrote: »

And how long do you think that would take??

House prices could outstrip my saving rate on an annual basis.

Alternative view is that you could sink your savings into a house now. Only to find house prices fall.

So not only do you lose equity in the house but receive no interest on your savings.

There's so much uncertainty at the moment I would personally be in no rush to make a major financial decision.

nick1977

Might be a silly question, but why don't you just get a 75% residential mortgage and then live in the property yourself?

Wutang_2

brit1234 wrote: »

I think they are a good thing personallly, what is bad is these artifically high house prices.

Deposits are big to protect against big forecast falls, it protects the lender. Buy to let mortgages have higher deposits due to the higher incidence of fraud and failure.

I know - sorry - I was joking!