Buying two houses at approximately the same time?

Mr_Kite

I have around 80k in the bank and wish to buy a house to live in for myself, along with a few lodgers, for about 90k. By borrowing money off relatives for a very short time period I could probably buy such a house outright, and then have no mortgage as well as a rental income of maybe 5.5k/year (assuming 10 months/year occupancy and letting each of my spare rooms), which combined with my salary would mean I could pay back relatives in like a year or something.

But I can't help but wonder whether it would be possible to buy the house with a 10k deposit, then a few months later use the remaining 70k-80k as a large deposit to get a buy-to-let mortgage on a very similar house nearby. I would then have a rental income of maybe 13.5k/year.

Would banks let me do this? Buy two mortgaged houses in one year?

kingstreet

Mr_Kite wrote: »

Would banks let me do this? Buy two mortgaged houses in one year?

Yes. However, you'll need a 25% deposit or more for each one. In addition, rental income needs to exceed mortgage interest (based on a rate of 6% or 7%) by around 30% and some lenders insist on a high personal income on top.

I'd talk to a good whole of market broker for this transaction.