Buy to let questions

Vendee

I really need my head examined. Less than 10 days after I finally repaid my 25 year mortgage, I'm thinking about taking out another one. I've got some surplus proceeds from my endowment policy and I'm thinking of putting it towards a new build buy to let property.

To be honest, I hadn't even heard of "buy to let" mortgages until recently. What I want to know is will a building society make a mortgage offer on a house which won't be completed until December? I only have to put down 5% on the house which isn't a problem but I need to know that come December, the mortgage will be forthcoming.

Any recommendations on good buy to let mortgages and general advice will be appreciated.

Leon_W

Yes, you can get an offer on a house that won't be completed until December.

There is no such thing as a good buy to let mortgage (or any other mortgage for that matter). It all depends on what your circumstances and requirement are. The mortgage that meets these needs the best is the best mortgage for YOU

New build ? Hmmm. Depends. If it's one of many in a block that has been marketed to "investors" then forget it. The competition and everyones desparation to let at any price will drive the rental income through the floor. If the demand is there and there isn't going to be lots of a similar property all up for rent at the same time then it's worth thinking about.

My personal favorite is 2 bed terraces. Always popular (with renters and buyers alike) and easy to shift if you want to get rid.

Vendee

Cheers. Point taken about "good mortgages". Its not an apartment, its a two bed end terrace. Its 60 seconds from the rail station with its 45 minute service to Cambridge (which is prohibitively expensive, property wise.

Leon_W

Sounds good.

Just be wary about demand. Is there a good local market for rental properties. What are similar properties renting for. Are there too many houses chasing too few renters. Simple things really but I get asked regularly by people with more money than sense about " a fantastic new apartment block" and the best thing is the builder is "giving" me a 5, 10, 15 percent "discount". Absolute nonsense !!

The mortgage will depend on how much you are willing to put down, the larger the deposit then generally the better deal you will get.

silvercar

You could always secure a mortgage on your current home to fund the BTL. You can still claim the mortgage interest as an expense and you could find a lower rate.