Second Home (For Residential Use) Options.

davidmcn

wiley25 wrote: »

I see, I thought that a BTL property was worked out as per the rental income alone, not by the worse case of not having a tennant. Does this mean people with 10's of rental properties need thousands of pounds worth of other monthly income to cover all their properties!?!

No, it means that they'll almost certainly have some income from tenants, because not all their properties are going to be vacant at the same time. Whereas if you only have one property, it's quite likely that you're going to have zero rental income from time to time.

wiley25

Thanks all for the replies.

The plan was to let my property out through an agency, that would cover any gaps in rental. But even if not, I would have monthly outgoings of around £750 for both mortgages, with bills on top. That is still not hugely unaffordable for the £2200 a month I pull in, especially when I apply my girlfriends projected wage of £25k (she is currently in her last year of a teaching course at Uni, with a guarenteed job at the end of it).

But good to know that there is a possibility of doing what I want to do. I haven't had the property valued for rental, but it was a rental property before I bought it in 2013 and was getting £450pm, I have significantly improved the property since also.

Kingstreet: Thanks for the constructive information, you state lenders that go down to 90% LTV for a second property with a BTL in the background. What lenders are they?

If all the planets aligned the only issue now would be my remortgaging to BTL (which HSBC will do, so long as I stay 85$ LTV or below) AND allow me to use to equity I release for a deposit! Any ideas?

Thanks in advance.

kingstreet

We will not disclose lender names on here, sorry.

rtho782

kingstreet wrote: »

We will not disclose lender names on here, sorry.

Just so OP knows, this isn't people being awkward, the brokers on this board are constrained by the code of conduct and of course their own professional ethics not to do anything that could be construed as giving advice or touting for business. They post here for no "reward".

But what you have been told tells you that you need to speak to a mortgage broker

daKlone

wiley25 wrote: »

The plan was to let my property out through an agency, that would cover any gaps in rental.

Just a thought; are you suggesting a "guaranteed rent" scheme?

I'd make sure you check the T&Cs carefully before going that way, as I seem to recall that there can be problems removing unwanted tenants or if the agency goes bust.

And that's even before you see how much they charge for the service, which I believe would knock your £450pcm down quite a bit...