Do I need a buy to let mortgage?

DannyboyMidlands

If your ultimate aim is to buy a place for yourselves to live in then this would seem like an expensive distraction that you don't need. You'll probably use your entire deposit to buy this place and then be back to square one with your savings.

Far better to keep saving. With interest you'll be adding around £15k per year to your deposit so shouldn't be too far from getting the place that you want.

GMS

You would need to be buying for £150,000 and have a 25% (£37,500) deposit.

Income wise you are fine BTL lenders tend to want 25k minimum income these days. Rental income should be ok to service the loan.

What work is needed to the property? In order to get a BTL mortgage the property would need to be suitable for letting. If any works are required in order to make it suitable then the lender would most likely impose a full retention meaning works would need to be done before funds are released. It would be better if the works were done prior to you purchasing.

Options are limited due to the LTV and being first time buyers.

pjcox2005

nightsky224 wrote: »

Price would be 150-180k not 100% sure yet. Rental income between 700-800. Our income is £75k total. May need about 10K of work doing to the property

Make sure you approaching any buy to let as a business and not just getting distracted by this property.

For example, mortgage on £150k at 5% would be interest payments of £625. If you are renting at £700, less management costs, costs of repair, upkeep etc then you could well end up making a loss on a yearly basis. i.e. subsiding another persons living costs