Buy-to-let

Redbull

Hi guys,

I was thinking of buying a property to rent out. Is it possible to get a normal mortgage (not a buy-to-let) then renting it out?

Are there any implications to this?

If its not possible, is there any other way of getting round the much higher interest rates for buy-to-let mortgages?

Thanks
Chris

Mr_helpful

yes there are ways of getting round it though not exacly legal so whats wrong with doing the job properly. The rates may be a little higher but you can offset all the interest against the income for tax purposes so is the rate realy higher. plus they are easier to get in many ways as long as you have the deposit

Redbull

Hi,

Thanks for your reply. The problem is, not only is it more expensive, but its also harder for me to get one as I am a first time buyer. All the banks I have called have said they dont do buy-to-let for first time buyers. I have a decent deposit and will probably find one...I guess I need a broker.

Thanks

JoeK_3

Redbull wrote: »

Hi,

Thanks for your reply. The problem is, not only is it more expensive, but its also harder for me to get one as I am a first time buyer. All the banks I have called have said they dont do buy-to-let for first time buyers. I have a decent deposit and will probably find one...I guess I need a broker.

Thanks

You've got the answer in one.

Find a good whole of market broker as it allows them to select from the entire market. With buy to let's this is more important as buy to let rates are slightly more expensive and you will need to build in flexibility to have premium holidays for when the property is not rented out.

What size of mortgage are you looking for?

JoeK

Mr_helpful

You do need a broker. Buy to let is simple as long as you follow the rules. Yes there is a restricted number of lenders to First time buyer but having said that the 2 biggest B2L lenders do lend to FTBs so all is not lost.

herbiesjp

HI Redbull

How old are you?

What purchase prices are you looking at?
What deposit do you have to put down?
What rental income do you expect on the property?

Redbull

Thanks...I will start looking for a broker as soon as i can

Hi Herbiesjp: - Im 28, looking at purchasing a property for 200k with a 65k deposit. Not 100% sure on rental income yet, it depends on what I end up buying and where, but it will prob be between 800-1000 PCM I would say.

Cheers

herbiesjp

Redbull wrote: »

Thanks...I will start looking for a broker as soon as i can

Hi Herbiesjp: - Im 28, looking at purchasing a property for 200k with a 65k deposit. Not 100% sure on rental income yet, it depends on what I end up buying and where, but it will prob be between 800-1000 PCM I would say.

Cheers

SO you are looking at 67.5% LTV which is great.

You are well above the lower age limit for lenders.

Even on the rental income front you will be fine

Have a word with agodd fee free whole of market adviser and they should be able to help you out quick easily.

HTH

discosantana

This seemed like a good thread to post my question on.

I'm a first time buyer looking to buy to let and I've come up against the 15% deposit point.
I was advised in the Bank that this is a general rule with buy to lets as it covers the risk to the bank that monthly repayments cannot be met when there are no tennants.

I'm in a slightly novel position of living rent free thanks to free accomodation with my job with a reasonable wage.

If I was not able to fill the property then I would definitely be able to pay the mortgage repayments. As this reduces risk to the bank, is anyone aware of any way of reducing the deposit?

Also, I guess, would this give me any room for taking a residential mortgage and still rent the property out?

Mr_helpful

1st time buyers can get 90% for btl but you may find rental income sabotages deal as rents havent risen as fast as house prices. You could also use a builders incentive if a new build

MortgageMamma

if you were to rent to a close family member then there wouldnt be a problem you taking it on residential. Remember though there is a lot of responsiblity in renting out property and little scope for profit unless you know what you are doing, try looking on the websites of the residential landlords association and the national landlords association and try this forum for advice www.landlordzone.co.uk