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First Time Mortgage - but renting out for first 12 months?
Ajdp11
Posts: 26 Forumite
Hi all
I currently rent, and I intend to buy my first home (In another location) and rent it out for <12 months until I would move in.
From what I see BTL mortgages are a lot more expensive, and given I am considering a 5/10 yr fixed, I am reluctant to pay the extra 2% per month when it would only be rented on a temporary basis. I get worse rates as it is as a first time buyer, despite having a reasonable deposit (c.25%).
Does anyone have any suggestions on the most cost effective way of doing this?
Many thanks
I currently rent, and I intend to buy my first home (In another location) and rent it out for <12 months until I would move in.
From what I see BTL mortgages are a lot more expensive, and given I am considering a 5/10 yr fixed, I am reluctant to pay the extra 2% per month when it would only be rented on a temporary basis. I get worse rates as it is as a first time buyer, despite having a reasonable deposit (c.25%).
Does anyone have any suggestions on the most cost effective way of doing this?
Many thanks
0
Comments
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No.
If you intend to let from day one, a BTL mortgage is the correct option, however much it costs.
You are opening a business and you need to cost out the plan properly, not compare it to a residential proposition which clearly doesn't apply here.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 -
could I not do a tracker for 12 months, then enter into fixed once I am living in the property (where the purpose of the property is no longer BTL?)0
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As long as you take a BTL mortgage from day one, the product you choose is entirely your concern.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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