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Investing in buy to let... repaying mortgages?
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The mortgage lender is looking for the income to be >125% of the mortgage cost, presumably to simplify how they determine if my proposed mortgage makes sense and whether I am likely to fail. These two come in at 175% of the mortgage cost.
You might find the >125% is based on the higher of the product rate and 6%. That's certainly the case with Virgin."Real knowledge is to know the extent of one's ignorance" - Confucius0 -
It is Virgin....0
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....but it's hardly irrelevant. I didn't know Rightmove did that - and will check now.
It's city centre, 2 minutes from a very popular beach, a national capital for insurances company headquarters, 1 minute from the city bus and train station and 75 mins from central london.
If you think you might be letting to couples you have got to have 2 car parking spaces available.0 -
- can you elaborate, why, on that?Also invested through a company, though in my case the tax advantages were more compelling.
The money was already inside the company. To take it out would incur income tax and/or dividend tax. Buying within the company saved having to do that.
One of the properties I bought was an existing let property in a regenerating city centre. I bought for less than the seller paid 10 years ago. It hadn't worked for him.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
The mortgage lender is looking for the income to be >125% of the mortgage cost, presumably to simplify how they determine if my proposed mortgage makes sense and whether I am likely to fail.
Normally it's 125% of gross rent to interest as a ratio. Though lenders are already moving towards 145% under regulatory guidance. This may well become the norm next year.0
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