Second property for rental - What are my mortgage options?

karrie12

I currently own a flat (in which I live) and I'd like to buy a second property for the sole purpose of renting it out. I've carried out some initial research into Buy To Let mortgages and it will be a while before I can save enough to put down a 25% deposit.

What are my options if I'd like to buy the property now?
Could I buy a second property under a residential mortgage and let it out?
What about buying at auction?

Existing Landlords
If you have bought one or more properties using residential mortgages it would be great to hear from you.
How did you manage to get a residential mortgage for a rental property?
Can you offer any tips?

Thanks,
Karrie

Lovelyjoolz

karrie12 wrote: »

How did you manage to get a residential mortgage for a rental property?

You can't. Its fraud.

karrie12 wrote: »

Can you offer any tips?

Yes, save up until you have 25% deposit. Or release more equity on your home and use that as a deposit.

G_M

karrie12 wrote: »

I currently own a flat (in which I live) and I'd like to buy a second property for the sole purpose of renting it out. I've carried out some initial research into Buy To Let mortgages and it will be a while before I can save enough to put down a 25% deposit.

What are my options if I'd like to buy the property now?
Could I buy a second property under a residential mortgage and let it out?
No - see link below
What about buying at auction?No problem - but how will you pay? Cash? Or mortgage?!!

Existing Landlords
If you have bought one or more properties using residential mortgages it would be great to hear from you.
How did you manage to get a residential mortgage for a rental property?
Can you offer any tips?

Thanks,
Karrie

Yes. If there is equity in your current home, raise a residential mortgage (or if you already have one, increase it) on your home.

Then pay cash for the rental.

Have you read:

New Landlords (information for new or prospective landlords)