Do I need a Buy to Let mortgage?

keeko

Hello everyone,

I've just had an offer accepted on a property after a search of over a year!

The property is in a good location and is especially popular with students. Properties in the street attract monthly rents of around £1400pm.

As a first time buyer I'm currently living in rented accommodation and I'm lucky enough to be very happy here and paying a very low rent (~£250 pm).

I'm pretty sure that once I've tidied the house up a bit, I'd like to offer the house for rental initially, especially as my girlfriend and I have thoughts of going travelling in a year or so's time.

Ideally I'd like to keep my options as open as possible. Will this affect my choice of mortgages?

Many thanks for any advice,

David

warwicktiger

Ummm, let me think, are you thinking of letting it out?

Might affect your choices, especially if you won't be around in the uk to debate the issues a lender may raise!

The_J

It will have to be a BTL mortgage.

Not many lenders offer BTL mortgages to First Time Buyers, those that do often base it on income. Speak to a mortgage broker.

kingstreet

This is a definite BTL proposition.

You'll find;-

- you'll need a higher deposit of perhaps 20% or more
- some lenders require a high personal income
- some lenders won't lend if you don't own your own home
- you'll need rent of 125% of the monthly mortgage interest at a rate of 6%, possibly more
- the arrangement fees will be higher, so will the rates.

If you've already made an offer, the time for doing the research on the type of mortgage you need is past. How have you worked out if the monthly costs are going to be affordable?

dimbo61

OMG what a great idea buy a house " tidy it up a bit" and rent it out to students while you travel round the world.
No need to worry about Gas safety certificates, EPC,s electrical safety certificates, HMO,s regs and planning, repairs and maintence.
Mortgage( commercial Loan) for buying a student property for a first time buyer who does not own a property and earn £25K + Deposit of 20/25% and money for fees 3%
Most students want double glazing, gas central heating, energy saving extras lights/insulation/fire safety/alarms/smoke alarms/ Cheap bills / broadband/power showers/ cleaner/gardner the list goes on and on

ACG

Most students want a cleaner and a gardner?

What uni did you go to?
most around here would be happy with a good meal lol.

I dont think you stand much chance of getting aBTL mortgage on your own. As has been pointed out they have more requirements, if you pass all of those listed then you might stand a chance but its not abusiness you can just leave and let it run itself - unless your paying say 10% of the rent to a management company/letting agents.

dimbo61

I kid you not we now supply a gardner to maintain the gardens and window cleaner to clean the windows.
Full cleaning service at the end of tenancy ( after the students have cleaned !!!) Repair and repaint every summer