Buying a Second Home

bluebell79

Hi, I'm fairly new here so bear with me
I'm looking for some advice about buying a second home, at the moment I'm renting a flat out which I bought to live in myself, my partner asked me to move in with him so I rented mine out carrying on with my fixed rate mortgage until feb next year, when it then will need to go to a BTL which I guess will put my monthly payments up a fair bit?! What I'm hoping someone can help me with is if I was to get another flat/small 1 bed house to rent out the same as I'm doing now how do peolple do it? I don't earn a huge salary at all, but all I have to cover each month is this mortgage which the rent coming in more than covers, I don't have a pension and was thinking this could be a good way of a bit of security as I get older !! The equity I have is about 30,000,

I'm hoping I have made some sense

Thanks for any advice

giddypenguin

I'm no expert - but, I'm fairly sure if you are renting out your flat, you'd need to tell the mortgage company before you do it - not just when the mortgage deal ends.

bluebell79

Its okay I have done that, they gave me permission( and charged me £295) to carry on with my current deal until it finished.

00ec25

sorry but your title is misleading, you are not buying a second home, you are starting up a mutli property rental business

a BTL mortgage (which is all you will be able to get) is not based on your income, it is based on:
a) you risking a sizeable part of your own wealth so you can show to the mortgage lender than you are serious - normally they will require around a 25% deposit as a minimum;
b) the amount you can borrow will be a multiple of your expected rental income not how much you earn yourself (though obviously that will be a factor); and
c) the rental income will be expected to cover at least 125% of the mortgage payment

G_M

bluebell79 wrote: »

Hi, I'm fairly new here so bear with me
....What I'm hoping someone can help me with is if I was to get another flat/small 1 bed house to rent out the same as I'm doing now how do peolple do it?.....

I'm hoping I have made some sense

Thanks for any advice

First step is to get the finance in place.
Second step is to do a full budget for the business.
Having established whether you'll make a profit, third step is to find, and buy, a property.
Forth step is to find, and contract with, a tenant.

This post may help.