Thinking about Buy to Let

00ec25

adrian66 wrote: »

But assuming I can get the loans, are my original assumptions still valid?

your original assumptions appear to be:
a) you can increase an existing residential mortgage by £40k and withdraw that cash to use to buy another property
you say the extra cost would be £210 pcm

obviously only you know if your salary can cover that extra cost and therefore if you'd meet the affordability criteria of your current lender when you ask for the increase. whether they will release cash for the purchase of a BTL property is unknown until you ask them

and

b) can you get a BTL mortgage for the remaining 50k required to purchase a property costing 90k in total.

that will depend on the attitude of your BTL mortgage lender as your "deposit" is in fact borrowed money rather than cash

go see a mortgage broker, your assumptions are neither proven nor disproven

Glover1862

I've got 2 BTL's, I wouldn't dream of using equity from my own home to purchase a BTL, do it if you have the 25% deposit from savings, you are betting on prices going up, if they go down you'll be stuffed and risking your own house which wouldn't be a good plan.

Anyway, a £90k house will bring in £500 pm approx, almost half of that goes towards increased mortgage payments of your current home, the other half need to pay the BTL mortgage off, taking off your expenses I'm not sure what you will have left.

If you have loans already then I would pay them off and try and save the deposit, at present you are in debt and looking to get yourself further in debt.

Cakeguts

Glover1862 wrote: »

I've got 2 BTL's, I wouldn't dream of using equity from my own home to purchase a BTL, do it if you have the 25% deposit from savings, you are betting on prices going up, if they go down you'll be stuffed and risking your own house which wouldn't be a good plan.

Anyway, a £90k house will bring in £500 pm approx, almost half of that goes towards increased mortgage payments of your current home, the other half need to pay the BTL mortgage off, taking off your expenses I'm not sure what you will have left.

If you have loans already then I would pay them off and try and save the deposit, at present you are in debt and looking to get yourself further in debt.

Depends where the 90k house is. It could be anything between £0 and £500 per month. It depends on the competition, where it is and whether it is the kind of house that anyone wants to rent. People assume that you can let any house. It doesn't work like that. What you might put up with in a house you had bought you might not want to put up with in house you rent.