Buy to let mortgage advice

Pauly.22

Hi,

Hope everyone is well, I'm after a bit of advice and maybe other peoples experiences.

Basically I'm 25 (26 in a couple of days) never had a mortgage before, and I currently live with my dad.

Ideally I want to buy and rent out a smallish house local to me, I already have someone who I know wants to rent from the start of march so I could have a tenant straight away.

I'm looking to spend a maximum of 100000 but for that I'd want all the fees to be included so probably a house maximum of 95000. Is that about right?

I've got 20000 deposit but that could be made to 25000 as my dad said he would lend me a bit but I would rather not own him any.

I've been reading up and some things have Said I need 50000 income as I'm a sole buyer which seems a lot, and others say I need to be in partnership with someone who already has had a mortgage.

I earn between £1500 and £2000 each month with will increase in august when I qualify and living at home means I've more than enough to cover the mortgage if I have to do some renovation work before I rent it.

So really I wanted to get some thoughts, is it possible for me to get a buy to let mortgage? I know I really need to get down the bank and ask them but saw this site so thought i could find out from the comfort of my front room.

ATB Paul.

Yorkie1

Some BTL lenders don't like to lend to people who are not yet home owners.

You'd need rental income to be about 125% of the mortgage payments at 6% AER. You'd also need minimum 20% deposit.

Don't got to your bank - go to a whole of market broker. Most BTLs are available through brokers only.

Dave_Ham

Almost certainly need 25% deposit, unless you bring in Dad on a more formal footing.

Expect a truck load of questions about your reasoning and highly unlikely you will find a product on the highstreet..

All the best

Pauly.22

Thanks for your replies, do you know any good brokers I could try?

I think I could quite easily get a normal mortgage but I don't want to move in, it's more of getting something set up for my future.

Although if I BTL will I still be able to buy my own house in a couple of years?

Thanks

Wh05apk

With regards brokers, best by referral, ask friends/colleagues, where in the country are you?


Generally having a BTL will not affect your ability to get a residential mortgage as lenders view them as self -funding, so normally have no effect on affordability.

Pauly.22

Wh05apk wrote: »

With regards brokers, best by referral, ask friends/colleagues, where in the country are you?


Generally having a BTL will not affect your ability to get a residential mortgage as lenders view them as self -funding, so normally have no effect on affordability.

I live in Birmingham,

What's the best thing to do just get some appointments with some brokers and see what they will offer me?

Once I have found out what I can borrow then start looking for a local house to buy.

Wh05apk

Speak to friends etc, to try to find someone they have used and were happy with, then speak to them by phone, if you like the sound arrange a meeting, but please do not see multiple brokers and waste all their time, unless you find you do not like the service offered.