Looking for some advice with my plans

dimbo61

You have not bought your first property and you are already looking at renting it out when you buy your second with your G/F
Most BTL mortgage want you to have at least 25% equity so putting down 10% still leaves you with 15% to find.
Now your lender may allow Consent to let but with 90% LTV they may say NO!
Why not start by buying your first property and move your G/F in and see how it goes.

Ross201085

Thrugelmir wrote: »

So you don't actually have a 10% deposit saved yet.

I have £25k ready to go now and my girlfriend only has £5k so I guess to simplify the question I am asking is it better to

A) I buy a property myself and take a mortgage on my own worth around £150k putting down 10-15% deposit from my savings and charge her a reduced rent while she lives with me and boosts her savings thanks to cheap rent, get her up to the £10-15k mark quicker than she is currently saving then we move out the flat (let it or sell it) in X years and buy somewhere bigger with us both putting in 10 to 15k deposit

Or do I

Put the 30k we currently have between us (25 from me and 5 from her) get a declaration of trust in case something ever happened between us, and buy somewhere worth more circa 220k own one property and that's that?

I guess both have there pros and cons but maybe someone else could see something that I might of missed

Ross201085

I posted this afew days ago and was wondering if there was any more advice for me to ponder :-)

Thanks

shaundiamonds

Both options are fairly equal risk - pretty low. Option A will allow you to save more money also and reduce the hassle if the relationship doesn't work out (dividing equity etc)