Buy to let question

airportgirl

Need some advice on whether I could get a buy to let mortgage in my situation.
My daughter and son-in-law had their flat repossesed in Feb 2014. They are currently living in rented house which is now on a rolling monthly basis after an initial 6 month agreement. They are paying £495 a month rent with myself acting as guarantor. The landlord has had the house up for sale at 110,000 ever since they moved in last march. There has been no interest in the property as it has not been well maintained.
I am considering buying the house as a buy to let and renting it to my daughter. This would provide them with a bit of long term security now my granddaughter has started at local school. I have approximately £70,000 equity in my house and a small amount of savings. If I could get the house for £100,000 what sort of deposit would I need? I would still charge my daughter £495 a month rent as that is affordable for them. How much could I borrow on that basis?

Annisele

I think it's impossible to say on the details you've given. I also think you'll need a broker if you do decide to do this.

If you want to let to your daughter, then you'll need a regulated BTL mortgage. Most BTLs are unregulated, but they'd be no good to you because they prohibit letting to close family members. Whether you can have a regulated BTL will depend, in part, on your income.

Is your daughter claiming housing benefit? If she is - or if she might need to in future - then you being her landlord could cause complications. (Doesn't necessarily mean she couldn't claim, but any suggestion you're setting the rent at an affordable level for your daughter, rather than a market rate, would cause trouble).

airportgirl

The rent is what she is paying her current landlord so I assume its the market rate. She is not claiming housing benefit as my son in law is working full time and my daughter also works part time.
My salary is £28000 but I do still have a mortgage on my own house with 8 years to go.

amnblog

Renting to your family prevents this being solved via a standard unregulated buy to let mortgage.

You need a regulated BTL product which are rare, you need a mortgage broker for this one.

airportgirl

Thank you for your help. Looks like this is a none starter.