Help needed first time buyer

ybk

Hi all

I'm new here but I need some advice to get on the property market.

I don't see the housing market going into decline in the near future and feel that I'm going backwards just standing still and need to invest in some bricks and mortar.

I'm 24 and earn 21k a year on a graduate scheme with a company. The job has excellent prospects but nothing is set in stone after the duration of the programme (almost 1 year into a 2 year programme).

there's a property coming up for sale which I'll basically have first refusal on valued at around 85k in the north of England in not to bad a part of town with good road links. Semi detached last two houses before open fields two bedrooms and off street parking.

The job I'm in at the moment will require stays of up to six months away from home in areas such as London (paid for by the company) so I don't want to pay for something I'm not living in. However I also don't want this opportunity to go by.

Therefore I was thinking of buy to leting the property for a while. Up to around 3-5 years depending on if I move location with work and if my situation changes. My theory being to allow a letting agency take care of tenant (as I can get a good deal from a friend in the business) and hopefully the rental income will pay off the morgage (or at least a large part of it each month).

So what are my options bearing in mind I:

• Won't be living in the property for at least the next 12 months and maybe longer
• I'm not looking for an income from the rental I just want it to pay the mortgage or at least a large part of it while I'm not living there
• I want to pay the mortgage off as quickly as possible hopefully 15 years.

Any comments welcome

regards

david29dpo

You will need at least 15% deposit for a BTL mortgage. Check out what rent you would get on the house and your monthly payments on the loan. If that adds up, sounds fine to me.

JoeK_3

What rental income will the property bring in?
Do you have any deposit?
Do you have any adverse history?
Do you have any other savings?

JoeK

ybk

JoeK wrote: »

What rental income will the property bring in?
Do you have any deposit?
Do you have any adverse history?
Do you have any other savings?

JoeK

The 15% would be no problem and I have a good credit history. The rental income is something I have yet to look into properly and tbh should be my priority.

Is it a simply process to switch from a BTL mortgage to a "normal" one a few years down the line?

JoeK_3

ybk wrote: »

The 15% would be no problem and I have a good credit history. The rental income is something I have yet to look into properly and tbh should be my priority.

Is it a simply process to switch from a BTL mortgage to a "normal" one a few years down the line?

You need to explore the rental yield as it's one of the two major decisions that a landlord considers on a BTL.

I'm a bit concerned about some of your answers and wonder if you are ready yet for the BTL market.

Yes you can revert back from a BTL mortgage to a domestic mortgage but you will need to move in and be able to prove that you earn sufficient income.

JoeK