Buy to Let - I'm Completly confused!

daveb80

Hi there,

I am really hoping to start my own business buying to let flats/houses but am completely stumped on the process. Sorry if this sounds dumb, but I genuinly want to get the ball rolling so to speak but dont want to find out I am going completely in the wrong direction as obviously a lot of money is at stake and is a life changing thing!

I have the following questions if that's ok?

- I would be a first time buyer, is it best to get my first property (say for example 80,000) on a first time buyer mortgage, or is that not possible/illegal?
- If I got a buy to let mortgage for say £200,000, am I allowed to get 2 properties under it? Or would I have to get 2 seperate £100,000 mortgages?

I got more questions, but my mind has gone completely blank! lol :rotfl: I'll post them when I remember.

Thanks

lynzpower

You have to get a BTL mortgage to rent out properties. Rent should be as a rule of thumb 125% the mortgage payments.

You have to have a different mortgage for each property

daveb80

Thanks Lynzpower, that's cleared it up for me. Much appreciated!

cledor

Have a look here
http://www.arla.co.uk/btl/btlguide.htm

dannyboycey

One word........... Timing.

Biggie

sorry to sound patranoising in anyway but in the current climate you need to be a pro and know what your doiing to make any kind of money.

When the market was rising many novices entered the market and it was sooo easy to make some paper cash as property pices we're rising.

I would only advice on B2L if you really know what your doing, and if you need answers to such basic questions then I assume your of the later category. I could be wrong of course....

lypsey

Daveb
Whats your postcode. Maybe we can have a quick look on Rightmove and see if we can help you

clutton_2

read https://www.singingpig.co.uk from front to back - its the best property forum in uk

lypsey

Clutton , it is also a site where everyone has a vested interest in the market, Its like saying "why not take advice from an EA" , there not going to tell you the markets crashing ,are they?

If you want a guide to the market pick up the FT and take a look at shares in Barretts , Wimpy , Persimmon etc etc . Their shares are plummeting.... why because they know the market is going to get a LOT , LOT harder for house builders.

Then take a look at the bank shares that lend to BTL and see what they are doing (even before the NR crisis) . Its a no - brainer

clutton_2

barrets wimpey etc are house builders, not house letters - its a different business.

there are still parts of the UK where you can get good yields on BTL depending on where you buy and how much for.

lypsey

Clutton , when I was at school ( I know it was a long time ago) but if you owned a house that you were goung to BTL if the market falls it goes down at the same rate as any other house. The point is that house price falls are in their share price

Come on then , lets prove a point , you name a city (big one) and I will show you BTL CANNOT be done