Buying to let whilst renting?

deanolfc10

Hello there,

I am new to this forum so I can only apologise if this sort of thing has been asked before - please redirect me if it has.

Long story short, I have £35,000 in savings and live in Cambridge where house prices currently average £410,000 (:wall:). I am renting a 2 bed house (£600 PCM) and am thinking of the best way that I can utilise my savings in order to get on the property market. I do not fancy buying a house in Cambridge so I am exploring the possibility of buying a house in another part of the country (Liverpool/Newcastle - I have family in both cities and know the areas well) and renting it out whilst still living here in Cambridge. Is this a realistic possibiltiy? Would I get treated the same by the taxman as those who own their own house and buy a second to let out? All advice would be appreciated.

Cheers

Pixie5740

You could try getting a BTL but some lenders will want you to own your own home first.

The rental income will be subject to income tax and the property could attract CGT when you dispose of it. You might also need to pay the additional 3% SDLT if you ever come to buy your own home.

snowqueen555

I made a similar thread a few weeks ago with few replies. I think it is very uncommon.

It seems one of the requirements of all BTL in the high street banks is that you already own a property, a big hurdle.

theartfullodger

Sometimes: I'd raised a B2L mortgage couple of years ago when not owning my home, but had significant other income and other let property. I live in wife's house (so I'm the
artfullodger...).

Ask a couple of big B2L mortgage brokers. Do you earn more than £25k pa (usual I think min income requirement for B2L..), fully evidence through P60/pay-slips?)