Property- advice please

naomi89

Any advice would be appreciated

I would like to buy a property in my name solely or with another family member- this will be rented out to a friend or another person.

I would then like to buy a property a few years after with my husband on a joint mortgage.

How would a mortage work in this situation?

I am clueless when it comes to things like this

G_M

Property 1. Buying with a family member is fine as long as you have clear, written, signed, agreements about future possibilities: what if one of you wants to sell? What if one of you decides to move in? what if.........

You will need to either pay cash, or get a BTL mortgage.

Do not let it out to a friend - let to strangers.

You need to read:
New Landlords (information for new or prospective landlords)

Property 2. See an independant mortgage broker and get best available residential mortgage at that time in the normal way.

kingstreet

If you and the relative don't already own a property in which you reside, you'll have a problem getting a BTL mortgage.

You'll also need 25% deposit and for the rental income to be at least 125% of the monthly mortgage interest, assuming perhaps 6%pa.

When you come to buy a residence, the maximum loan will be 80% or 85% as lenders often offer a lower maximum LTV for second properties and you'll need a lender which ignores the BTL in the background if it is self-financing.

mattk1234

I'm currently in the sae situation where my house I brought 4 years ago I brought with 10% deposit. Currently paid off 25% of it.

My partner and I are now buying another hosue but keeping this 1st house (getting consent to lease). As she hasn't brought before she qualified for 1st time buyer deals and we have got a mortgage on a 10% deposit for a second house.

No real problems at all ( so far!)