25k mortgage for a 30k property

Colin297

I'm looking about buying a nice 1 bedroom investment property for 30k.

This will be the first property of many, hopefully. I would hope to buy another property within another year too.

My plan therefore is to get a 25k mortgage (or something around that figure) and pay it off as soon as possible - between 3-5 years.

I'm looking at HSBC's unlimited overpayment mortgage.

Is that my best option or are the fees too high to justify it? Might i be better considering, for example, a personal loan via the Credit Union instead?


Any advice would be appreciated.


Rgds,
Colin

Wutang_2

Colin, you're looking to buy a 'property' for £30,000?

kingstreet

Does HSBC have a minimum valuation?

I know Halifax is £40k.

kingstreet

I've just checked TMW and it's £50k there.

kingstreet

Ran it through Mortgage Brain and I get one lender at 70% maximum. No-one above that.

dimbo61

So Colin if you can buy a NICE one bedroom property in your area you need at least 30% deposit
So £9K and money to pay fees,legals.searches etc
Do you own a property already ?
Many BTL lenders have minimum loans so they will not lend on a property of £30K
You then have to prepare the property for rent !
Gas safety checks, electrical safety checks, landlords insurance etc

Colin297

Wutang wrote: »

Colin, you're looking to buy a 'property' for £30,000?

I should have specified that I'm from Northern Ireland.

Property over here is pretty cheap right now.

I'm not going to link you guys to the property just yet, but it's a modern little apartment. I was surprised at it's asking price too. Perhaps there'll be alot of interest. It's a terrific investment IMO - great letting pottential (i know the area very well - it's vibrant for young professionals).

I just need to get the funding in place. I believe HSB's minimum loan is 10k so i think i'm okay in that regard, but the fees might nullify it's feasibility.

In regard to gas certificates etc, I'll have to look into all of that but this property should be pretty much good to let. I'll do what i have to though - my dad have various properties and will help.

70% LTV would be ok, but id prefer closer to 75% if possible. I might check out personal loans, too.

Colin297

Anyone? :money::money:

maninthestreet

So what monthly rental income will this £30K property generate?

Colin297

350 per month , conservatively

As much as my brother gets on his 60k rental property

GMS

If a property which is such a great investment and offering a great rental yield then ask yourself why a professional investor hasn't snapped it up for cash.

Have you checked the terms of the lease?