Do I take offer or rent

nollag2006

new_home_owner wrote: »

... if the lending criteia stays the same for btl mortgages, it will be impossible for you to get q btl mortgage.

What balderdash

A BTL loan is easily available where gross rent covers the interest element of the mortgage by at least 25%.

The OP's sit is gross rent of £550, with repayments of £400 (so interest element would be substantially less than that).

I've had no problem getting my own CTL extended - but even if there is an issue, a decent BTL mortgage should be easily obtainable on the OP's figures

new_home_owner_3

nollag2006 wrote: »

What balderdash

A BTL loan is easily available where gross rent covers the interest element of the mortgage by at least 25%.

The OP's sit is gross rent of £550, with repayments of £400 (so interest element would be substantially less than that).

I've had no problem getting my own CTL extended - but even if there is an issue, a decent BTL mortgage should be easily obtainable on the OP's figures

If thats what you think carry on, i think you will find out the hard way. out of interest what bank will give you a mortgage just based on the rent being 125% percent of the mortgage alone?

I think you will also find you will only get consent to let for a short period of time, then you will have to look for a btl deal, no bank will let you rent your house out on a residential rate indefinatley

If i was the other person i would go and try and get a btl mortgage now, just to see what type of deal he will get.

And if i was you i would tale a look in the mortgage forum, theres loads of post's in there with people asking about btl mortages, now im no advisor, but there are plenty of advisors in there replying to people asking about btl mortgages, and they all say the same if you havent got more that 75% ltv you will struggle to find a btl deal.

but hey you know best, good luck.

new_home_owner_3

nollag2006 wrote: »

Was considering getting into the BTL market.

Budget is up to £250k (mortgage of £200k)

Any one got any suggestions of decent areas to buy, or any useful articles to read?

Was considering Vauxhall, or Bermondsey: both seem to offer decent rental yields.

https://forums.moneysavingexpert.com/discussion/464031

this was posted in may 2007, i hope you never did nollag, please tell me you never?


If you have made the mistake please dont encourage other people to do the same its not nice.

Generali

pillowcase wrote: »

Hi we are moving abroad permantly and we haved recieved an offer on our flat, at 115k, we bought it too years ago for 95K, the mortgage is 90K so after fees we should clear 20K.

However the problem is we don't know if we should sell it or rent it.

I have spoken to a letting agency and we can get about 550/month rental income, after fees and certificates and insurance I think we will get about 450/month. The mortgage is 400/month and I have consent to let. The problem we are facing is at the minute it seems a no brainer to rent out the property, but we are on a tracker mortgage paying 2% at the moment so if rates rise the mortgage wont be covered with the rent so I would have to top up the mortgage. There is also the issue of the stress of managing a property from Australia. Any thought? thanks for your time

Sell it. I moved to Australia 18 months or so ago and doing anything in the UK is a collossal pain in the rear due to the time difference as much as anything else.

If it's any consolation, the Aussie housing market is easily as overheated as the UK's and the tax treatment of BTL is very favourable over here as you get to offset any costs against your income tax as well as against rental income.