Buying a property to rent out.

shippers

After my partner and I get married in June we are hoping to buy an apartment to let out. We are still at the very early stages and are going to do some research into the finances of it all to see if it can be afforded. We currently live in a 3 bed detached house worth £200,000. Our mortgage is currently £150,000 left to pay. We were hoping to get a buy to let mortgage on an apartment as a future investment but are unsure where to start with it all. Any advice would be greatly appreciated .

Cannon_Fodder

Save 25% of the apartment price.

shippers

That is one way which we could do over the next few years. I have heard some people release equity in their current home but would this be too risky? As I say we are completely new to this so value an experts opinion

G_M

Come back when you've worked out your budgets.

Cost of property?
Purchase costs (SDLT/conveyancing etc)?
Equity Vs BTL mortgage?
Interest rate?
Expected monthly rental income x 10 (NOT 12)?
Cost of fitting out?
Overheads/running costs?
Agency fees?

Cannon_Fodder

You would be well advised to leave your equity as it is. If you were under 50% LTV, you might have some leeway to release equity.

But the current 75% LTV on your own place is needed to get reasonable re-mortgage deals. If you take out equity, and the LTV goes to 85% or 90%, the deals you get will become less attractive = more expensive.

The BTL would then need to make more profit to offset those worse deals.

Not much point making £100 a month out of the BTL, if you have to pay it straight out to top up your residential mortgage.

As G_M indicates, there are several other elements to consider.