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Buy to let property question

mikeopvc
mikeopvc Posts: 912 Forumite
Part of the Furniture 500 Posts Combo Breaker
in House buying, renting & selling
Just a quick question about what's best to do?

My wife and I want to buy a second property to rent out or possibly sell on depending on any profit we might make, we have the deposit in place (well we will have by the weekend) and will be looking to get a buy to let mortgage, is it a case of viewing properties and making an offer then if the offer is accepted then we apply for the buy to let mortgage or is there another way?
Can you get a buy to let mortgage in principle before choosing a property?

Any advice appreciated

Thanks

Comments

  • danslenoir
    danslenoir Posts: 220 Forumite
    mikeopvc wrote: »
    Just a quick question about what's best to do?

    My wife and I want to buy a second property to rent out or possibly sell on depending on any profit we might make, we have the deposit in place (well we will have by the weekend) and will be looking to get a buy to let mortgage, is it a case of viewing properties and making an offer then if the offer is accepted then we apply for the buy to let mortgage or is there another way?
    Can you get a buy to let mortgage in principle before choosing a property?

    Any advice appreciated

    Thanks

    Yes, you can get an agreement in principle just like a standard residential mortgage.

    I assume you are aware that you will need around a higher deposit (~30%) for BTL mortgages?
  • mikeopvc
    mikeopvc Posts: 912 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    Ok thanks, yes we are aware we'll need a higher deposit we were aiming at 25% and we also know we'll be paying 3% stamp duty on a purchase up to the value of £125k.
    I thought the BTL lenders based the mortgage on the rental potential of a property so how can they give an agreement in principle beforehand?
    Or will they look at our income etc.? I hope not as we have had a real struggle just to get a remortgage due to me being self employed and having low value SA302's
  • theartfullodger
    theartfullodger Posts: 15,989 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    Usually b2l lenders require a "normal" (salary, pension, tax return) income of at least £25k
  • mikeopvc
    mikeopvc Posts: 912 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    theartfullodger wrote: »
    Usually b2l lenders require a "normal" (salary, pension, tax return) income of at least £25k

    Would that be in total or each?
  • theartfullodger
    theartfullodger Posts: 15,989 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    mikeopvc wrote: »
    Would that be in total or each?
    Speak to a couple of big BtL brokers - e.g. the NLA & RLA mortgage guys..
  • mikeopvc
    mikeopvc Posts: 912 Forumite
    Part of the Furniture 500 Posts Combo Breaker
    OK will do, Thank you.
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