1st time buy to let advice

caylansmummy

hi

were first time buyers, we want to buy a property to rent out, its a property on a road that the houses are going for £100,000+ and the seller has agreed to give it us for £70,000 (because we told him a white lie..that we could only get a mortgage for £70,000) it needs new back windows and we would probably put a new kitchen and bathroom in but there not a must..

anyway i wanted to know if 1st time buyers can get buy to let mortgages and whats the lowest deposit rate??

thanks in advance for your help

ILW

1. Sellers do not knock 30% off the price just because you say that's all you can afford. I would guess the price is what it is worth.

2. BTL will usually need a 25% deposit

cookiemonster1972

Agreed, Hope I am not telling you hopw to suck eggs but make sure there is nothing wrong with the property. It seems they want rid of it if they are reducing by 30%.

Goodluck

caylansmummy

sorry i should have gone into more detail...its basically an old women lived there, she died and left the house which was already paid off, she left it to her son, who is an alcoholic, her son has lived in it for about 5-6 years his girlfriend rents the house next door to them (which the social pay for) so basically he wants rid of the house so he can move next door with his girlfriend rent free and basically use the money from the sale of the house to spend on drink!!

tawse57

And you would be perfectly happy with this?

ILW

tawse57 wrote: »

And you would be perfectly happy with this?

Think OP is looking at BTL.

poppysarah

Have you looked into your responsibilities as a landlord. And all the potential problems the neighbours might cause. (Whilst I don't want to be rude about people with an alcohol problem, they don't make the best neighbours)

caylansmummy

hiya yea ive looked into it, we live across the road from them you see, and to be honest, they just sit in the house and drink, no loud music, no kicking off in the street, there harmless, they keep them selves to themselves, never have any visitors and it just seems such a good bargain to let it get away!!

but im unsure if we would get a buy to let mortgage with us being 1st time buyers and how much the cheapest % deposit would be

thanks for your help everyone

BitterAndTwisted

You're first-time buyers so presumably that means you don't own the home you occupy now but are considering becoming professional landlords? Sorry, that just doesn't make any sense to me at all. How would you be fixed if you have tenants who never pay a penny in rent bar the first month's, they trash the place and it takes you six months to evict them? Could you afford all of the mortgage payments and the cost of your own accommodation plus the cost of getting the property back into a rentable condition during all of that time?

giddypenguin

Exactly the point I was going to make B&T, I thought I misread the 'FTB' bit at first!

The house next door to ours has been converted into 3 flats, the top one is occupied by a alcoholic gentleman. He has been known to throw things out of the window (hitting our cars), set fire to his house (burnt down completely once, and the fire brigade is called out on average twice a month) and quite often falls asleep while running a bath. He also USUALLY keeps himself to himself, but when he mucks-up he does it big style - it's the people who live under him I feel sorry for, one lady's bedroom was flooded by the fire brigade, took 6 months for the insurance to come through - it was a one bedroom flat.

mynameisdave

BTL Mortgages were available for first time buyers 18 months ago, whether they are now I do not know. You would need absolute minimum 20% but they would be likely rubbish rates.

25% to start getting something resembling decent

30% to get competative

40% to top rates