We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

credit facility for a rental investment

vivelasieste
vivelasieste Posts: 3 Newbie
First Post
in House buying, renting & selling
Hello, 
I'm thinking of buying an apartment, I don't have a lot of money but I wanted to rent the apartment as soon as I bought it in order to pay the loan. 

Do you think it could go through a bank? 

Thank you :smile:

«1

Comments

  • Comms69
    Comms69 Posts: 14,229 Forumite
    10,000 Posts Third Anniversary Name Dropper
    Like a mortgage?

    I mean this is a terrible idea, you simply dont have the skillset to be a landlord or enough (30%) money
  • vivelasieste
    vivelasieste Posts: 3 Newbie
    First Post
    Comms69 said:
    Like a mortgage?

    I mean this is a terrible idea, you simply dont have the skillset to be a landlord or enough (30%) money
    not a mortgage, but to buy an apartment, take a tenant (and pay the loan with the rent). 

    in the long run I could enjoy my property. 
  • Slithery
    Slithery Posts: 6,046 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    edited 4 June 2020 at 8:36PM
    That is a mortgage.

    Buy-to-let mortgages require you to have at least a 25% deposit, plus you need to usually already own your own property.
  • Crashy_Time
    Crashy_Time Posts: 13,386 Forumite
    10,000 Posts Seventh Anniversary Name Dropper
    Some posters here tell us that landlords always make money, so this sounds like a plan!
  • Slithery
    Slithery Posts: 6,046 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    Oh come on now Crashy, no-one here has ever said that.
  • grumiofoundation
    grumiofoundation Posts: 3,051 Forumite
    Fifth Anniversary 1,000 Posts Name Dropper
    vivelasieste said:
    Comms69 said:
    Like a mortgage?

    I mean this is a terrible idea, you simply dont have the skillset to be a landlord or enough (30%) money
    not a mortgage, but to buy an apartment, take a tenant (and pay the loan with the rent). 

    in the long run I could enjoy my property. 
    Go to a bank and ask to see a not-a-mortgage advisor. 
  • Slithery
    Slithery Posts: 6,046 Forumite
    Eighth Anniversary 1,000 Posts Name Dropper Photogenic
    Is your credit history good enough to put the purchase all on 0% credit cards?
  • [Deleted User]
    [Deleted User] Posts: 3,297 Forumite
    1,000 Posts Fourth Anniversary Photogenic Name Dropper
    vivelasieste said:
    Hello, 
    I'm thinking of buying an apartment, I don't have a lot of money but I wanted to rent the apartment as soon as I bought it in order to pay the loan. 

    Do you think it could go through a bank? 

    Thank you :smile:

    If you don't have a lot of money then this sounds like a non-starter.  You will need a buy-to-let mortgage because you are buying it to let.  This means a minimum deposit of 25% plus you'll need money for SDLT, solicitor, survey, etc.  If you don't already own any property, which I suspect you don't, then you will have fewer BTL lenders to choose from.

    Will you manage the property yourself or will you pay a letting agent to do it?  Does the area require mandatory landlord licencing? Where will you live if your only property is being let?
  • vivelasieste
    vivelasieste Posts: 3 Newbie
    First Post
    maybe I should have been more specific. 
    I did my studies in France and it is there that I discovered these "rental investments" which are accessible even for tenants. so no need for another property to mortgage. 

    But as I work in the UK, it's necessarily here that I could apply for credit. 
  • AdrianC
    AdrianC Posts: 42,189 Forumite
    Eighth Anniversary 10,000 Posts Name Dropper
    vivelasieste said:
    maybe I should have been more specific. 
    I did my studies in France and it is there that I discovered these "rental investments" which are accessible even for tenants. so no need for another property to mortgage. 

    But as I work in the UK, it's necessarily here that I could apply for credit. 
    So, in France, you can get a BtL mortgage without owning your own home.

    But, here in the UK, you can't normally.
★ ★ ★ Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.2K Banking & Borrowing
  • 253.6K Reduce Debt & Boost Income
  • 454.3K Spending & Discounts
  • 245.3K Work, Benefits & Business
  • 601K Mortgages, Homes & Bills
  • 177.5K Life & Family
  • 259.1K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.
Update Your Picture