Buy to let advice

flintg

I have been made redundant at the age of 50 and job hunting has not been good. I have some savings and my redundancy money and am looking at going into buying to let. As I am now unemployed I can’t see me getting a mortgage. My question is, if I buy my first house outright and then get a tenant in will I be able to get a mortgage on that property to buy the next one and so on.

Any advice will be appreciated.
Graham

holly_hobby

Most BTL lenders require previous evidence of servicing a mortgage (some within 12 mths of application, others don't stipulate a timeframe) - so your options on remortgaging an unencumbered BTL, may well be v restricted to no takers at all, depending upon future criteria changes (although a v low LTV may help).

I am more concerned at this point, regarding the fact that you are seeking to plunge all your savings into an pretty ill-liquid asset, which is further compounded by the fact that you may not immediately obtain a tenant (so will neither have your lump sum, nor any income), and other associtated letting costs - all at a time when you are without regular income yourself.

IF you are determined to do this, ensure you retain a good emergency fund (as selling the property to release urgent capital may take some time, if you don't accept a loss for quick sale), also thoroughly research your target lettings market, associated letting costs, landlord responsibilities and achieveable rents for the area and target audience.

You will need to make an annual tax return to HMRC by self assessment, with of course rental income also affecting entitlement to certain benefits.

Not to be rushed into ... !!

Hope this helps

Holly