We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Want to buy a second property. How can I calculate based on income and outgoing cost?

2»

Comments

  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    You need proper budgeting to get realistic affordability long term

    How much did you save in 2016?

    if it is less than your current estimate per month*12 then you will need to make cutbacks.
  • LiveOnce
    LiveOnce Posts: 476 Forumite
    I saved as much as I expected. Give or take my monthly savings are roughly the same every month.

    How do I do proper budgeting?
  • getmore4less
    getmore4less Posts: 46,882 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    LiveOnce wrote: »
    How do I do proper budgeting?

    A budget is an advanced plan of how you want to allocate your money, in detail for at least 1 year and realistic estimates for longer.

    if you take on more debt your free cashflow will reduce so you need more detailed forward looking plan to reduce the risk of not having cash to cover unplanned costs, with 2 houses those risks go up without good planning.
  • Alias_Omega
    Alias_Omega Posts: 7,915 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I'm a landlord.

    You will need to probably look at Let-to-Buy first, the arrangement fee will be around £1000. Probably a 2 year fixed mortgage too. For me, I would fix mortgages for life....

    We keep £5000 in cash ISA for repairs. Pre-approved repairs authorized via letting agent. We pay agent 12.5% and just collect the rental income from them.
  • martindow
    martindow Posts: 10,727 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    LiveOnce wrote: »

    Once the banks open tomorrow I will arrange an appointment and see what they say.
    It might be better to go to a broker who should be able to advise on the best lenders to approach. You don't want to spend money on fees or have unnecessary credit checks unless you can be fairly confident you will get the mortgage with a particular company.
  • teddysmum
    teddysmum Posts: 9,533 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    You do realise that only the interest (ie not capital repayment) part of your mortgage can be used as an expense against tax and that tax will be payable on the rent you take ?
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.6K Banking & Borrowing
  • 254.5K Reduce Debt & Boost Income
  • 455.5K Spending & Discounts
  • 247.5K Work, Benefits & Business
  • 604.4K Mortgages, Homes & Bills
  • 178.6K Life & Family
  • 261.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.