how many mortgages?

jig

Hi all,

Needs some advice, and I'm a total newbie so please bear with me. I have no mortgage or debts at the moment. I have quite a bit saved up and I plan to be a FTB and also take out another mortgage(s) to get further properties with a view to let.

What options do I have?? I understand there will be risks involved but I have been saving for a number of years now and now feel this is the time to invest.

All advice appreciated.

Thanks in adv

poppysarah

How much do you have saved and how much is the house you want to live in?

beedeedee

I would take one small step at a time until you are more experienced. Get one property and a mortgage simply for that one, till you can see what your actual outgoings are for at least 3-4 months (not what you guess they are going to be). From then, you will be in a much better place to judge what might be best for you as the next step. Too many mortgages can definitely spoil the broth.......take it easy.

jig

poppysarah wrote: »

How much do you have saved and how much is the house you want to live in?

I have £175k saved and want to get a property to live in for around £250k(not found it yet!) and want to invest the rest.

jig

beedeedee wrote: »

I would take one small step at a time until you are more experienced. Get one property and a mortgage simply for that one, till you can see what your actual outgoings are for at least 3-4 months (not what you guess they are going to be). From then, you will be in a much better place to judge what might be best for you as the next step. Too many mortgages can definitely spoil the broth.......take it easy.

Agrred but this is the point over the years ive just been a bystander and watch prices go up and now I feel is the right time!

I agree theough I will live in my place for a few months well at least till i find the investment properties, but good advice.

jig

can you plough money into one property and borrow against it? what are the alternatives and pros and cons?

maninthestreet

Whats is your annual gross income?

getmore4less

How do you know you can make money from BTL?

You need to to start there and do the research on becoming a landlord and setting up a letting business.

If you are going to do this seriously then you need a business plan and understand the time, costs, obligations, taxes and the pitfalls.

You could try the landlordzone for info on becoming a landlord.
HMRC has the info on taxes


For your main residential mortgage, as long as any BTL stuff stacks up on LTB and rents then you are looking at around standard lending best rates will be for good LTV < 70% and sensible salary multiples 3-4 times.

If starting with the residential and you want liquidity in your residential equity then an offset might be a sensible route.

Max out the residential on income multiple, then adjust for LTV/rate/equity trade off. Then offset the full 175k and furhter savind till you find your BTL.

Whats your income?

mlz1413

If you only get 80% LTV mortgage, so that you get a decent rate, then £50k of your savings will go on a deposit, take out 1% stamp duty and buying fees that's another £5k, furnishings (bed, sofa, wardrobes etc) another £5k. so that's is £60k of your savings out of the way.

BTL mortgages tend to be around 60% LTV with upto 3% arrangement fees, so you still have enough left for maybe 2 BTL properties.

Remember that interest rates will rise and you must be able to fund the voids that will happen. Do a business plan, understand what a LL is responsible for including a tax return.

If your going to be invest in property don't do it to make a quick profit and ensure you have a plan for if you need to sell at a loss.

jig

getmore4less wrote: »

How do you know you can make money from BTL?

You need to to start there and do the research on becoming a landlord and setting up a letting business.

If you are going to do this seriously then you need a business plan and understand the time, costs, obligations, taxes and the pitfalls.

You could try the landlordzone for info on becoming a landlord.
HMRC has the info on taxes


For your main residential mortgage, as long as any BTL stuff stacks up on LTB and rents then you are looking at around standard lending best rates will be for good LTV < 70% and sensible salary multiples 3-4 times.

If starting with the residential and you want liquidity in your residential equity then an offset might be a sensible route.

Max out the residential on income multiple, then adjust for LTV/rate/equity trade off. Then offset the full 175k and furhter savind till you find your BTL.

Whats your income?

Thanks sound advice. I am a contractor therefore my annual salary will be low but seeint nat west at the moment who will lend based on my day rate. I understand options are limited here in terms of mortgages as I do not earn a 'regular' salary but take most of my income as dividend.

Any suggestions of the best option for someone in my position?

Thanks
Jig

jig

maninthestreet wrote: »

Whats is your annual gross income?

See post above!

Thanks