Buy to let mortgage for first time buyer

goldlemontree

I am a first time buyer and would like to invest some money I have inherited in a buy to let property. I was told by my financial advisor that because I am a first time buyer, I would be unable to get a buy to let mortgage unless I make a cash purchase and then after 6 months I would be eligible for a buy to let mortgage. Obviously I am confused as to how I would cash buy a property and then get a mortgage for it 6 months down the line,so I would really appreciate it if someone could offer some advice on this problem?Thank you

amnblog

Your adviser is wrong.


A couple of lenders will do this (unless your adviser has already discounted them for other reasons).


Find a broker who knows what they are doing.

Mortgage_Mark_2

Yep, crappy adviser.

I can think of a few lenders who will do that without hassle.

GMS

What is your income? How much are you looking to purchase for? How muchh do you want to borrow? How much rent per month?

goldlemontree

Thanks for the reply guys, I didn't realise anybody had until checking on the off chance all this time later, even after setting my preferences to let me know if anyone did! An update by the way, I am going to just get a residential mortgage first and then take out a buy to let in a couple of months time. I figured I would rather sort out owning my own home first before renting another out to others. Also, I don't use that advisor anymore

dimbo61

To get a BTL mortgage you normally need to be working and earning £25,000 a year for many lenders.
Many lenders also like you to own your own home with or without a residential mortgage.
Is it wise to own a BTL property and pay tax, CGT, etc on the rental income while paying rent to live in a property yourself ?

GMS

Why go through the costs of lender fees, solicitors fees and valuation fees when you intend to remortgage after a coupe of months. Not to mention any costs of coming out of the mortgage early.

Speak to a broker and do it properly from the outset.

If you are planning to get a residential mortgage then apply for permission to let immediately you may well be refused. Won't comment on leting wthout permission.

If you are buying both a resi and a BTL then apologies.

Let_Us_See

goldlemontree wrote: »

Thanks for the reply guys, I didn't realise anybody had until checking on the off chance all this time later.

Postd on 28-11/2014 and checked for responses yesterday!

Without the full facts of your situation we will never know if your original adviser was right or wrong as there could be many reasons why he believed it could not be placed.

Perhaps I will expect your response around the middle of May?

goldlemontree

GMS wrote: »

Why go through the costs of lender fees, solicitors fees and valuation fees when you intend to remortgage after a coupe of months. Not to mention any costs of coming out of the mortgage early.

Speak to a broker and do it properly from the outset.

If you are planning to get a residential mortgage then apply for permission to let immediately you may well be refused. Won't comment on leting wthout permission.

If you are buying both a resi and a BTL then apologies.

Thanks for info, I have spoke to a broker and yes will be buying both at some point.

goldlemontree

I am needing some advice! I made an offer on a property for £130,000 with a deposit of £30,000 and spoke to the mortgage advisor at the agency. Because my accounts for the past three year have shown a drastic drop (75,000 to £25,000, to £13,000) the broker said most lenders would only go for the last year of £13,000 and because of that I would only be able to get a 65% loan to value mortgage. Should I still go for this option if it the only way I can secure a mortgage and put down a much larger deposit? What are the advantages of putting down a larger deposit?

kingstreet

Yes, declining profits normally means latest year taken, not average.

What are the advantages of putting down a larger deposit?

Smaller interest payments, better mortgage rate?