We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Buy To let mortgage help please!
TDA10
Posts: 355 Forumite
Hi :wave:
I am looking at the possibility of venturing into BTL's and was after a bit of advice please.
I have renovated a couple of properties and made a good return on them, but I'm now looking at buying something that will hopefully generate a regular extra few pounds, rather than a lump sum as with the renovations.
The problem being that the money for my last renovation will be virtually all going on an extension on my home, and I am not currently working as I am also renovating my home, thus no actual income for me at present. (Living off OH's wages and money from last renov at the mo. No benefits being claimed or anything)
I would possibly be looking to buy something with a sitting tenant so as not to have to maybe fork out on mortgage payments until I get one - is that a good idea or is it better to 'vet' someone yourself?
I heard that most lenders lend on the rental income on the property rather than what the 'landlord' earns, so would anyone consider me under the circums do you think? I will be able to raise a deposit and would be looking to borrow prob about £80k (the going rate for an average 2 bed Victorian terrace or 3 bed ex-council semi around here). My credit rating is excellent too (:j Finally - after years of CCJ's etc!)
The mortgage on my home is solely in my name and the money for renovs has been from mortgages in OH's name, but I really want to do this in just my name if it's feasible? There isn't any equity in my home though - that's been swallowed up with the extension - so borrowing off that isn't an option!
The long term plan is to get some BTL properties on my portfolio then borrow on the equity of them to do more renovations.
Am I living in cloud cuckoo land? I'm all up on budgets and contingencies etc - it's just BTL's I have NO knowledge of at all.
Any advice very much appreciated - sorry if this topic has been covered - I did a search, but nothing similar came up for me...
Thanks
I am looking at the possibility of venturing into BTL's and was after a bit of advice please.
I have renovated a couple of properties and made a good return on them, but I'm now looking at buying something that will hopefully generate a regular extra few pounds, rather than a lump sum as with the renovations.
The problem being that the money for my last renovation will be virtually all going on an extension on my home, and I am not currently working as I am also renovating my home, thus no actual income for me at present. (Living off OH's wages and money from last renov at the mo. No benefits being claimed or anything)
I would possibly be looking to buy something with a sitting tenant so as not to have to maybe fork out on mortgage payments until I get one - is that a good idea or is it better to 'vet' someone yourself?
I heard that most lenders lend on the rental income on the property rather than what the 'landlord' earns, so would anyone consider me under the circums do you think? I will be able to raise a deposit and would be looking to borrow prob about £80k (the going rate for an average 2 bed Victorian terrace or 3 bed ex-council semi around here). My credit rating is excellent too (:j Finally - after years of CCJ's etc!)
The mortgage on my home is solely in my name and the money for renovs has been from mortgages in OH's name, but I really want to do this in just my name if it's feasible? There isn't any equity in my home though - that's been swallowed up with the extension - so borrowing off that isn't an option!
The long term plan is to get some BTL properties on my portfolio then borrow on the equity of them to do more renovations.
Am I living in cloud cuckoo land? I'm all up on budgets and contingencies etc - it's just BTL's I have NO knowledge of at all.
Any advice very much appreciated - sorry if this topic has been covered - I did a search, but nothing similar came up for me...
Thanks
0
Comments
-
I would advise you to go and see an independent mortgage advisor.Shortly after my post, you will read lots of comments along the lines of "You're too late" etc. Ignore them, it's all about sums.Well life is harsh, hug me don't reject me.0
-
Yeah, go for it. Never a better time to take the plunge.
I would suggest you mortgage yourself to the hilt, go sub-prime if need be.
You really can't lose.
I confidently predict HPI will continue to soar at 10%+pa and soon even my window cleaner's property will be worth £1million.
Ignore subsequent posters, they don't interperet the market aswell as you and I. :rolleyes:anger, denial, acceptance
0 -
Go for it. With interest rates on the rise and HPI at a virtual stand still, subsidising a tenant for a few years until the flat is repossessed is a fantastic way of committing financial suicide.0
-
Yep couldn't be a better time, my two now yield over 3% Down a bit on the 10% I used to get, but hey, think of the capital appreciation!0
-
For those currently interested in a new BTL adventure, have you considered holiday homes in Baghdad or the Gaza strip. Seize the day !anger, denial, acceptance0
-
For those currently interested in a new BTL adventure, have you considered holiday homes in Baghdad or the Gaza strip. Seize the day !
Don't be silly Rover, everyone knows Ulan Bator is the next hotspot!
http://money.guardian.co.uk/weekly/story/0,,2035690,00.html0 -
mystic_trev wrote: »Yep couldn't be a better time, my two now yield over 3% Down a bit on the 10% I used to get, but hey, think of the capital appreciation!
As a matter of interest, how does your yield drop to 3% from 10% asuming you've not been greedy and started dipping into the capital gain then your yield should be the same. Interest rate rises shouldnt have made that much of a difference. Or have I missed something.?0 -
As a matter of interest, how does your yield drop to 3% from 10% asuming you've not been greedy and started dipping into the capital gain then your yield should be the same. Interest rate rises shouldnt have made that much of a difference. Or have I missed something.?
Because you measure yield against current value, not price paid.0 -
Yeah, buy now before you miss the boat.
The Interest Rates are currently 2% on mortgages & the potential rental yields are around 25% at the moment. - around 20% of the property's value in profit per year
You'll make loadsamoney, its guaranteed, house prices only ever go up.
:j0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.8K Banking & Borrowing
- 254.6K Reduce Debt & Boost Income
- 455.6K Spending & Discounts
- 247.7K Work, Benefits & Business
- 604.7K Mortgages, Homes & Bills
- 178.7K Life & Family
- 262.3K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.7K Read-Only Boards