Inexperienced

lessonlearned

thegirlintheattic wrote: »

Consider actually running a home before rushing into things. Most lenders will require you to have had a residential mortgage before BTL, and you will need a deposit plus savings for maintenance etc.

This is not true. I know several people who have bought BTL's whilst still living with parents.

You will need deposits though and a contingency fund for void periods and repairs.

Staying at home whilst you build up your little empire makes good economic sense.

However, whilst I don't want to stamp on our dreams an income of £1200 per month won't be enough. You will need to put down 25% deposit on a BTL.

Mrs_Z

You don't state your location and what the average house prices in your area are, but I'd recommend you get onto Righmove and start looking at the house prices.

I would forget about the BTL for now. Given your age, aim to get into the property ladder by getting a 2 bedroom place of your own first, and then rent out the spare room.

From there you can then start building your BTL empire.

thegirlintheattic

lessonlearned wrote: »

This is not true. I know several people who have bought BTL's whilst still living with parents.

You will need deposits though and a contingency fund for void periods and repairs.

Staying at home whilst you build up your little empire makes good economic sense.

However, whilst I don't want to stamp on our dreams an income of £1200 per month won't be enough. You will need to put down 25% deposit on a BTL.

Over half of BTL providers will not consider first time buyers. I did not say he would not get one, just that most lenders will not consider him. You also have to factor in that most lenders are getting much more choosy over who they lend to, so the OP will have to have a significant deposit to access any BTL product he may be able to get.

lessonlearned

thegirlintheattic wrote: »

Over half of BTL providers will not consider first time buyers. I did not say he would not get one, just that most lenders will not consider him. You also have to factor in that most lenders are getting much more choosy over who they lend to, so the OP will have to have a significant deposit to access any BTL product he may be able to get.

Yes - at least 25%. I did say that.

And of course he will need to shop around, but then he would be doing that anyway to get the best deal.

A good broker is the answer.

Fire_Fox

It's a tad premature to even think about a broker when the OP has no savings whatsoever! Totally pointless debate: the market and rules are likely to have changed by the time the OP has saved 25% plus costs of buying plus 'rainy day' funds.