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buy to let
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Acehole_2
Posts: 202 Forumite
hello there people,
apologies if this sounds so stupid to some/ all of you but i have to ask,
at the momnet we owe around 75k on our house, approx 9 years to go on mortgage.
we want to buy a flat and rent it out, cost will be around £60k.
only really glanced at some mortgages and they want 25% deposit on buy to let? we have a yearly income between us of around £65k and no other debt apart from our mortgage, but not got the deposit required.
my question is do you have to say it is a buy to let at the start? can we not try and get a better deal mortgage and then let it out. what legalities are we ignoring.
thanks
Ace
apologies if this sounds so stupid to some/ all of you but i have to ask,
at the momnet we owe around 75k on our house, approx 9 years to go on mortgage.
we want to buy a flat and rent it out, cost will be around £60k.
only really glanced at some mortgages and they want 25% deposit on buy to let? we have a yearly income between us of around £65k and no other debt apart from our mortgage, but not got the deposit required.
my question is do you have to say it is a buy to let at the start? can we not try and get a better deal mortgage and then let it out. what legalities are we ignoring.
thanks
Ace
0
Comments
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What is the existing value on your property you are living in?
It may be cheaper to raise funds on your home and buy the flat outright?
What is the motivation for buying the flat?I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
hello, thanks for the reply,
i guess the house we live in now is worth around £110k ish so not a lot really,
want the flat/ house as a long term potential retirement fund, or somewhere for the kids to live/sell.
we have the extra cash at the moment and are already overpaying on our mortgage, ISA's etc yield nothing so possible long term investment.
Ace0 -
No problem - not sure this will fit for you.
Best you can do is continue to clear your own mortgage as quickly as possible and then seek to do something else.
Buy to lets are expensive and even on residential rates (if achieved) there is only the long, long term capital appreication unless you get a mega deal.
I wish you well though...I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
If one is on a legacy tracker mortgage & paying say 1.5% interest, it makes sense to do any investment that can pay 3% or more rather than pay off the mortgage. BTLs in say, Liverpool were recently reported as earning an average of 7% return.0
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If one is on a legacy tracker mortgage & paying say 1.5% interest, it makes sense to do any investment that can pay 3% or more rather than pay off the mortgage. BTLs in say, Liverpool were recently reported as earning an average of 7% return.
Just a shame that there are other costs and just not interest...I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it.This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
OK, 5.34% all taken into consideration. Actually my memory served me wrong, it was Blackpool not Liverpool.
http://www.thisismoney.co.uk/money/mortgageshome/article-1689988/Top-100-postcodes-for-buy-to-let.html
But here it says 6.6% for Liverpool:
http://northwest.county-homesearch.co.uk/2012/01/30/liverpool-top-of-buy-to-let-league/
I am not even sure if this figure allows for potential property appreciation.0
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