Can i get a mortgage for buy to let property bought at auction ?

sycamorer8

Hi All , just looking at some ideas - any help appreciated.

I'm thinking of purchasing a buy to let property at auction.

In my area i can buy at auction a two bedroom property in the region of 60k that requires some modernisation. My question is if i have 15 k deposit to hand and the rental income was around £400 would i be able to borrow the rest ( bearing in mind i'm buying at auction and what would the monthly payments be likely to be ?)

Ay advice appreciated ;)

geoffken

Do you have any idea of COSTS!!!!! Of being a landlord other thn cashing a cheque every month for £400

Wh05apk

Yes you can, but, buying at auction you will usually have 28 days to complete, if the lender can get you an offer, and your solicitor can do the conveyancing in that time then yes, any delays and you could be in breach, and potentially lose your deposit.

If you are intent on buying at auction, could you raise the funds another way? maybe by remortgaging your home, so you would have the funds ready, and not conditional on a lender being happy with the property?

Annisele

If the property "requires some modernisation", is it mortgageable?

How much would you have to spend to bring it up to spec to get your £400 a month?

Even if you could get a mortgage, are you sure the yield is worth it? Assuming no voids and no costs (both horrendously unrealistic assumptions) gives a yield of 8%, and realistic assumptions will bring that down a lot.

sycamorer8

Hi , Thanks for comments

Geoffken , yes i have a very good idea of costs as i already have one buy to let property - so i'm not a complete novice;)

I would also be be able to purchase the property outright with the savings i have however these are 'tied-up' in a long term policy which i prefer to leave untouched. I Know it would probably be financially better to use the savings but these i see as an emergency fund at the moment and feel far more comfortable knowing they would be available in a crisis ! and hence i asked about the mortgage.

Obviously i have the deposit which i feel comfortable putting down the 15k and also the money to renovate is available.so i'm thinking for 20k (the houses in question only need cosmetic work) i can be in a position to have an income of around £400 a month less mortgage payments and running costs , hence this was the reason i am after the info and am asking under these circumstances what the mortgage payments would likely to be ?

Any help appreciated.

Annisele

Well, you can get an idea of BTL rates from here. If you're only going to put down a £15k deposit, you won't get the best deals.

sheslookinhot

sycamorer8 wrote: »

I'm thinking of purchasing a buy to let property at auction.

two bedroom property in the region of 60k My question is if i have 15 k deposit to hand and the rental income was around £400 would i be able to borrow the rest ( bearing in mind i'm buying at auction and what would the monthly payments be likely to be ?)

Ay advice appreciated ;)

why don't you find out through other channels you won't get a mortgage on here.

Is this really for you if you can't work out monthly payments on a 45k loan ?

sycamorer8

Sheslookinhot , Many thanks for your help and advice - much appreciated :rotfl:

I was on here for advice ! Yes i can look elsewhere and have / will do but i was on here for information and hopefully to share the experiences from the people who have done this before , thats the idea of a forum.

At the end of the day , what we are talking about is not rocket science is it ? although not my specialist field , admittedly , thats why i ask !

And in answer to your question , yes , i think i should be doing this !:rotfl: