2nd Mortgage for BTL - possible?

JV1

Hi,

I'm looking into getting a second mortgage to buy a property to rent to university students in a city 1hr away from my current home. I currently have a joint mortgage with my partner, to be married next year, and the 2nd mortgage would be joint also.

How easy is it to be granted a 2nd mortgage and is there anything I should know before looking into it more seriously? Would it be more beneficial to go for the mortgage with the same company we have ours with at the moment?

Any advice would be greatly appreciated.

Thanks,

John

amnblog

There is no benefit is going with your current mortgage company.

If you are letting to students your options are limited.

You need a broker as the lenders in this market do not in the main deal direct with the borrower.

Expect to pay a broker fee.

kingstreet

Makes no difference which lender you use.

You'll need 25% deposit and the rental income to be at least 125% of the monthly mortgage interest assuming a rate of say 6% pa.

dimbo61

Are you already a landlord ? Do you have a business plan ? Have you got a list of builders, plumbers, electricans to sort out all the problems that students cause. Are you happy to drive one hour at 2/3am because a student has locked himself out.
Have you done your homework and know which type of property to BUY ? Where to BUY and what work needs to be done once you have bought.
Are you going to use a letting agent to find students or manage the property.
What is the university doing ! If there is a shortage of student accommodation?
There are lots of BTL landlords going bankrupt every week and plenty of repossessed properties on the market that need thousands of pounds spending on them to bring up to standard.