Urgent help required - FTB

mcc86

I have had an offer on a flat in Cardiff accepted this weekend just gone. I have yet to instruct my solicitor to proceed, or put in the application for the mortgage (but I have had an agreement in principle).

I am putting down a 18.9% deposit (mortgage rate I've been offered is 3.79%) - however I have now been offered a job in Hampshire which would be a better position. House prices however are a lot dearer therefore buying there would not be an option.

Am I right in assuming that I could still go ahead with purchasing the flat in Cardiff and go on a variable rate, and let it out? It was going to be a long term investment anyhow, however I had planned on living there for the first couple of years, so this is a slightly different scenario.

I had read in places that you can not have a 'buy to let' mortgage unless you have 25% deposit - but can not find confirmation of this anyway.

Many thanks in advance for your help.

harvey115

Typically BTL are usually available if you are going to get 125% rent compared to your monthly mortgage repayments.

If you go for your residential mortgage you will need to get a Consent to Let, which the lender may refuse to give.

To be honest, I would not go for a residential mortgage and rent the place as your insurance will be void and all your letter from the lender will going to the address. So a lot of problems can arise.

In terms of long term investment, I do not think this would still be the best time to invest in property unless you are getting a cheap deal or not thinking of selling the place for another say 10 years.

Best of luck