Buy to Let Mortgage for 21 Yr Old

7ewis

Whilst still living at home, I would like to buy my first property and rent it out until I either I want to move into it myself, or purchase another property. The only problem is, from what I've read it seems fairly difficult to get one at my age.

I've been regularly searching to find somewhere to buy, and have not found many places yet. One that caught my eye is a one bed flat, new build that should be finished in up to around 6 months time.

Are there any buy to let mortgages out there that would accept me?

I currently make quite a bit over the average salary per year (PM me if you need it), and can put down a deposit of just over £100K.

The flat I was looking at is up for £290K. From what I have read so far, it may be difficult to get that. I can probably add another £20K or so deposit if absolutely necessary.

Obviously due to my age, I have a limited credit history. (PM me if you need futher details)

Do I stand a chance? If not, what should I do instead? Look at cheaper properties?

horseymchorseface

Please put details on here, otherwise not many will 'PM' you as it's absolutely needed, it could be 10k income for all we know.


Also do you know what it takes being a Landlord? The financial and legal implications of this.


You do know the recent tax changes being forced upon the LL and their ability to claim interest is being scaled back ?


Are you able to cover voids and repair costs as well as eviction costs e.t.c?

ACG

I agree, I understand why you would not want to post your income but you could do with making as easy as possible for people to help you.

However, if your income is over £25k, you should have a few options. If your income is below £25k then your options will be limited. Not impossible in either case but it is probably worth speaking to a broker as I do not think any of the high street lenders will be open to you at the moment.

7ewis

ACG wrote: »

I agree, I understand why you would not want to post your income but you could do with making as easy as possible for people to help you.

However, if your income is over £25k, you should have a few options. If your income is below £25k then your options will be limited. Not impossible in either case but it is probably worth speaking to a broker as I do not think any of the high street lenders will be open to you at the moment.

I did post it at first, but thought I might be revealing too much. I currently earn £45K per year. So will hopefully have some options.

Can you recommend a mortgage broker?

7ewis

horseymchorseface wrote: »

Please put details on here, otherwise not many will 'PM' you as it's absolutely needed, it could be 10k income for all we know.


Also do you know what it takes being a Landlord? The financial and legal implications of this.


You do know the recent tax changes being forced upon the LL and their ability to claim interest is being scaled back ?


Are you able to cover voids and repair costs as well as eviction costs e.t.c?

My salary is currently £45K per year.

I don't know too much about being a landlord yet, but have family and friends that can assist.

I didn't know that either, but my goal is to just get onto the property ladder as quickly as possible and add other streams of income, in addition to my salary.

I wouldn't want to spend every last pound on a property, so would like to keep some for potentially some renovation and repairs.

k3lvc

OK - I was with you till the salary was mentioned - is this genuine, single employer (or audited accounts) or is this income from multiple sources ?

If the former are you going to let us in on your secret so I can start training the kids and set the expectations so I can retire early ?

And p.s. I'm only jealous (but genuinely interested)

ACG

You should have options, I would not rule out normal rates at this stage.

Im not allowed to recommend brokers.

7ewis

k3lvc wrote: »

OK - I was with you till the salary was mentioned - is this genuine, single employer (or audited accounts) or is this income from multiple sources ?

If the former are you going to let us in on your secret so I can start training the kids and set the expectations so I can retire early ?

And p.s. I'm only jealous (but genuinely interested)

I would say the secret is the tech industry!

The not-so-secret, is London wages. But yeah, single employer. I did include my £4K bonus, as it's guaranteed.

ACG wrote: »

You should have options, I would not rule out normal rates at this stage.

Im not allowed to recommend brokers.

How would I go about finding one? Just a Google search? Is there anything I should be looking at for to avoid being ripped off?

ACG

Friends/Family/Google.
I would say best to avoid paying any upfront broker fees. At least then you are only forking out money if you get your Mortgage.

Marvelous2062

I would say you have options but a strong broker is the best way to go because of your lack of history. ACG in this thread is a good broker so you can PM him for details. I recently used him and got my mortgage offer in jus over a week. He knows the market very well.

dimbo61

You need a broker to get a BTL Mortgage in most cases.
You are already a higher rate taxpayer so the new tax rules on rental income will effect you.
You need to have a business plan !
What kind of property should you buy ?
What area ? Yield ? Rental income, location, type of tenant, target market etc.
Rates, deposit, fees, survey, lenders, accountant ?
Would you be better buying a place of your own and getting a Lodger ?£7500 a year tax free on the rent a room scheme.
Long term plans, pension, credit history etc
Much to consider