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Buying a buy to let rather than a house for myself
mattpoll
Posts: 4 Newbie
Hello 
I'm 24, and considering buying a buy to let property. I'm a web developer and my income goes through a ltd company. I'm in my 1st year of trading, so do not have a financial history. I understand that I would need 2-3 years of accounts to buy a house for myself. Is this the same for a buy to let property? I have £15,000 saved and wish to purchase a flat (for around £60,000).
If I was to put down a £15,000 deposit (25%), this would cover the mortgage on the property with an additional 25% left over each month. The additional 25% (£100 per month) would be used to pay for letting agency and any maintenance.
Could I buy a buy to let property? Would they take my income into account, since the rent will pay the mortgage?
Thank-you!
I'm 24, and considering buying a buy to let property. I'm a web developer and my income goes through a ltd company. I'm in my 1st year of trading, so do not have a financial history. I understand that I would need 2-3 years of accounts to buy a house for myself. Is this the same for a buy to let property? I have £15,000 saved and wish to purchase a flat (for around £60,000).
If I was to put down a £15,000 deposit (25%), this would cover the mortgage on the property with an additional 25% left over each month. The additional 25% (£100 per month) would be used to pay for letting agency and any maintenance.
Could I buy a buy to let property? Would they take my income into account, since the rent will pay the mortgage?
Thank-you!
0
Comments
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To purchase a BTL, the relevant issues are;-
rent v mortgage interest
minimum valuation/loan
deposit
credit history
homeowner status of applicant
personal income & trading history.
You need to speak to an independent mortgage broker to attach a timescale to what you can do and when.
You appear to be combining several of the major problems of which only one can be squared away per case.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »To purchase a BTL, the relevant issues are;-
rent v mortgage interest
minimum valuation/loan
deposit
credit history
homeowner status of applicant
personal income & trading history.
You need to speak to an independent mortgage broker to attach a timescale to what you can do and when.
You appear to be combining several of the major problems of which only one can be squared away per case.
Thanks, so they do take income into account?0 -
What you are asking for Matt is tricky with very few lending options.
Expect to use a broker and expect that broker to charge you a fee as what they get from the lender will not cover their time.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.0 -
Only to ensure you aren't trying to circumvent the residential affordability rules by "gaming the system" using BTL for a property in which you plan to live...Thanks, so they do take income into account?I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »Only to ensure you aren't trying to circumvent the residential affordability rules by "gaming the system" using BTL for a property in which you plan to live...
Surely not, you can't trust anyone these days!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.0 -
thought buy 2 let had to be min £50k mortgage alsoDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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