New Mortgage & Buy to Let

chanz4

Been a landlord isn't fun, trust me we have x3 property's. Don't forget to take away you additional gas checks, maintenance it will be pennies

cyantist

We did just what you are proposing. We ended up porting our initial mortgage and increasing the borrowing, while taking out a buy to let mortgage for the property we wanted to rent out. We had to have sufficient income to cover both mortgages and all running costs in full in case it wasn't rented for any period of time.

The yield doesn't sound that high though. Our mortgage is £270 and we get £575 rent and overall we make very little profit

brit1234

Didn't they just ramp up the lending criteria for buy to let on the 1st of January and aren't the big tax changes on buy to let coming in in a couple of months. Many landlords are selling up so might be worth seeing what happens with the fallout.

regprentice

brit1234 wrote: »

Didn't they just ramp up the lending criteria for buy to let on the 1st of January and aren't the big tax changes on buy to let coming in in a couple of months. Many landlords are selling up so might be worth seeing what happens with the fallout.

Yes big changes coming. In scotland this year we will see the new private housing tenancies (scotland) bill which makes a number of changes including ending short term 6 month tenancies and rent boards as an independent adjudicator over rent increases.

Govt has shown they are happy to apply retrospective changes to landlords and i can see there is only more to come. Interest rates on the way up, student lets market saturated with new builds, end of help to buy, brexit, some local btl markets (aberdeen where i am from) all but crashing already (house prices down 10% year on year and falling) The btl gravy train is over imho.

What you are actually doing is making a gamble on continued house price increases. That could backfire on you spectacularly.

Ollie_D

Thanks for all the advice, made for some interesting reading.

The general theme seems to be, BTL is getting costly, so only go for it if the numbers are clearly in your favor. I think I might of been thinking ideally when hoping to rent this place out, as it is my first house and I've spent a decent chunk of money on it.

Just had a valuation, and the rental was around what I expected but the property price (albeit from an EA) was more than I thought, so now thinking cash in on this place and revisit renting properties in a few years.