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Buy to Let as a first time buyer?
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Posts: 5 Forumite
My mother has a buy to let property currently rented out for £1600 pcm. The property itself has been valued for £350k, it currently has an interest only mortgage of around £200k outstanding. I have savings of around £20k and would like to buy the property off her for the sum of the outstanding mortgage. Would this be classed as a gifted deposit? as I would be buying for below market value. Also would the fact i'm a first time buyer mean that it will be hard for me to find someone willing to lend to me even though I only need a mortgage for around 50% LTV? I have a salary of £30k a year and no debt and would continue to rent it out.
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Gifted deposit (as the equity would need to be used as £20k is not a big enough deposit on BTL) and a first time buyer BTL... I would strongly suggest you speak to a broker.I am a Mortgage AdviserYou 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.0
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Are there any brokers or lenders which specialise in first time buyer BTL's?0
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There are lenders that will do it - im not sure they specialise in it but there should be a couple of options.
Most brokers will be able to help.I am a Mortgage AdviserYou 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.0 -
What did your mother purchase the property for? As she may have a tax liability to settle when disposing of the property.0
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Thank you for your help i'll start with L&C and see what they say0
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I don't know a lender which will accept a BTL on the basis of a concessionary purchase.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
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Would they accept a concessionary purchase for a different type of mortgage?0
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Some will accept a concessionary purchase from a close relative on a residential basis. However, you don't intend to reside in the property and your income is insufficient for the amount in question.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
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Why does your mother want to do this?0
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To give me a helping hand0
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