Young & Naive - Need advice?

Brent_Towers

Hi,
Looking for some advice RE buy-to-let mortgages and where to go from here.
I've just turned 21 and live at home with my parents. I work full-time earning approx. £18k per annum, study a business degree full-time and manage my small buy-to-let portfolio, earning £4,080 post-tax.

I currently own two properties:

Property 1: Residential mortgage (consent to let), Property value £65k, mortgage stands at £32k.
Repayment mortgage £180pcm (£110 int). Rent £425pcm.
Property 2: Buy to let mortgage, Property value £55k, mortgage stands at £37.5k
Interest only mortgage £135pcm. Rent £365pcm.

I also have savings of £13k, increasing to £18k by Aug 2015.

The consent to let expires in August 2015. I plan to remortgage onto a buy-to-let deal, leaving 25% equity in the property.
Property value: £65k
25% Equity: £16,250
Funds released: £65k - £16250 - £32k - £2k costs = £14,750

I will have this £14,750 + £18k savings to reinvest in a further two properties at £50k each (£12.5k deposit), increasing my properties from 2 to 4. This will also leave around £8k savings.

Both of my properties are currently mortgaged through Lloyds Bank, however they have increased their minimum age from 18 to 25 on new buy-to-let mortgages.

I've been researching buy-to-let lenders and many often have a minimum age of 25 or require a minimum £25k income to meet their criteria.

Given my circumstances, does anyone know any buy-to-let mortgage providers that will cater to me? I know this post is a bit long winded...

Thanks for any advice/comments

Brent:beer:

Dave_Ham

Hi Brent,


This is further complicated by the fact you are not an owner occupier, although I suspect this can still be placed.


Many buy to let lenders will only take applications from brokers and if this is something you are looking to expand, then a mortgage broker would be a best next step.

amnblog

As Dave says


Options there, options limited, you need a broker.

fiesta04

Young and Naive to have a Property Portfolio at 21, I THINK NOT.

F4

Brent_Towers

fiesta04 wrote: »

Young and Naive to have a Property Portfolio at 21, I THINK NOT.

F4

Naive to my next steps I suppose. Still new to all of this :rotfl:

I'll get in touch with a mortgage broker to see where I can go next.

Thanks for the help :beer:

getmore4less

Gross yields good at nearly 8%, current net yield on capital invested is good at over 6%, as you gear up watch it does not get hit and you need to factor in potential for rate rises, your lending is allready over 4%.

It's all about being in the right place/time to buy cheap on good gross yields so don't rush purchases because you have the cash.

Probably a good time to get someone on board to manage finding and renewing lending ready to grow the business.

Would be good if there was some flexible lending available where you can overpay and draw down as you find properties.


Then you can focus on finding the places, earnings and costs.

Brent_Towers

getmore4less wrote: »

Gross yields good at nearly 8%, current net yield on capital invested is good at over 6%, as you gear up watch it does not get hit and you need to factor in potential for rate rises, your lending is allready over 4%.

It's all about being in the right place/time to buy cheap on good gross yields so don't rush purchases because you have the cash.

Probably a good time to get someone on board to manage finding and renewing lending ready to grow the business.

Would be good if there was some flexible lending available where you can overpay and draw down as you find properties.


Then you can focus on finding the places, earnings and costs.

Thanks for the comment and advice. Looks like I need a broker on board - finding mortgages given my age and income appears to be quite difficult!


I know the area I live in reasonably well and returns are good at the moment, so now seems to be the time to buy. Just wish I had more money... Don't we all... haha :-)