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Risk of commerical buy-to-let

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justintime999
justintime999 Posts: 91 Forumite
in Mortgages & endowments
Hi

What's the risks with these types of mortgages?

Do I have to secure my house against it?

Thanks peeps :)

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Commercial property covers a wide spectrum.

    Care to elaborate
  • justintime999
    justintime999 Posts: 91 Forumite
    Thrugelmir wrote: »
    Commercial property covers a wide spectrum.

    Care to elaborate

    Silly me.

    Of course you are correct.

    I'm interested to buy a place with A1 license and rent it out.

    Not going to do business there myself.

    I'm thinking to put down 60% deposit and commerical buy-to-let the rest so I have some money should it stay empty for 1 year. After that I am in serious trouble, but I think someone should take it dirt cheap.
  • GMS
    GMS Posts: 5,388 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Do you own other properties?
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • amnblog
    amnblog Posts: 12,729 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Do not use your home as security. It is not worth the risk.

    Secure the mortgage on the commercial property only.

    Don't forget that business rates can be a factor for the owner on an empty A1.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • justintime999
    justintime999 Posts: 91 Forumite
    GMS wrote: »
    Do you own other properties?

    Yes, one, but I have never tried commercial before.
    amnblog wrote: »
    Do not use your home as security. It is not worth the risk.

    Secure the mortgage on the commercial property only.

    Don't forget that business rates can be a factor for the owner on an empty A1.

    Sound advice. Thanks.

    That's my worry. If for whatever reason the property doesn't go on rent, instead of making a profit I will make a loss.
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