First time buyer now but soon to be buy to let buyer?

Elsterap

Hello.

I am a first time buyer who is buying a house in need of complete renovation with a 95% ltv. I plan to live in this house forever.

However - I hope to release equity when I remortgage due to the increase in house value from the renovation. This could raise enough for a 25% deposit for another house.

I then want to use this money to buy a buy-to-let property.

My question is - if i have just remortgaged at 95% ltv then am I likely to get a buy-to-let mortgage with a 25% deposit? It would likely mean that total debt was 7x over salary and the buy to let income was double mortgage payments.

Thanks : )

BLOW_FLY

I think you need to do more research, how much do you know about BTL?

Highly leveraged BTL mortgage (making the huge assumption you'll get one based on info above which I doubt you will) you'll be absolutely crucified by recent tax changes.

BF

silvercar

My question is - if i have just remortgaged at 95% ltv then am I likely to get a buy-to-let mortgage with a 25% deposit? It would likely mean that total debt was 7x over salary and the buy to let income was double mortgage payments.

BLT mortgage criteria is usually based on rental income, though some lenders like to see that you have a salary of £25k+ to tide you over voids etc.

With such a high LTV, be aware that tax changes mean that you will soon only be getting relief for the mortgage interest at the basic tax rate.

Elsterap

I am better at DIY than mortgages but I know how to convert a house into a HMO and I expect to be able to get some equity release from my actual home within a few years.

My research into btl has begun with this question on here

kingstreet

A house in need of complete modernisation and 95% mortgage.

The two are usually mutually exclusive.