Buy to Let mortgages.

Sunnydays_3

I'm currently in the process of remortgaging my house to release funds which will then be used as a deposit for two Buy-to-Let mortgages. I don't intend to make any 'real' money from it as i'm hoping it will provide a more secure pension in years to come.
As there seems to have been an explosion in these type of mortgages recently I'm wondering if any Moneysavers have been down this route, and who would be willing to recommend any lenders who specialise in B2L's?

herbiesjp

What types of rates were you looking for?

Fixed, variable etc?

meanmachine_2

Sunnydays wrote:

I'm currently in the process of remortgaging my house to release funds which will then be used as a deposit for two Buy-to-Let mortgages. I don't intend to make any 'real' money from it as i'm hoping it will provide a more secure pension in years to come.
As there seems to have been an explosion in these type of mortgages recently I'm wondering if any Moneysavers have been down this route, and who would be willing to recommend any lenders who specialise in B2L's?

So you're not going to make ANY money from this investment, and you think that, in a low inflation environment a 1 bed flat currently at £200K (!!!) is going to be worth much more than that in 25 years time?

Meh, you could be right. It's a gamble. It also assumes that we have no recession at any time in the 25 year period and int rates don't go above their historical average, thereby triggering a market crash.

Good luck with that.

Don't you think it would have been better to have thought about BTL when you COULD have made money each year and when prices weren't at their absolute peak?

Sunnydays_3

Meanmachine,
Hmmm.. Let's start again please. Firstly I said 'real' money. That is to say, i'm not naive enough to think that I could give up my day job by any stretch of the imagination. I do expect to make some pocket money from these properties, but seeing as I don't retire for another 25yrs I fully expect these properties to be paid off in full by then, leaving some capital and security under my belt. The theory's quite simple and it's far from an unachievable aim.

Secondly, if you under the impression that every one bedroomed flat in the UK is circa £200k, then you do really need to lose that parochial view of the world. There are many formally depressed towns in the UK, particularly in Scotland where I live, that are about to receive major investment and infrastructure where properties can be bought at the moment for a sixth of the price you've quoted. Again, i'm not stupid enough to think I will make a killing overnight, if I was then your criticism would be more than justified.

Lastly, hindsight is a wonderful thing isn't it? Granted, you're not wrong in what you say about buying before the boom - but it's all relative Meanmachine. Do you think, back then, I would have been able to have had my house remortgaged and have released anywhere near the capital i'm getting now? Of course not. I am setting my sights at a very modest and realistic level and have a clear understanding of where I intend to go with this. And yes it is a gamble, but if carefully researched it's one worth taking.

Now, back to my original question please. Do you have any BTL lenders you could recommend? :-) :rotfl:

mummytofour

My folks bought their first house in the 70s for 8k they sold it in the hight of the slump for 64k its now on the market for 239k.... ok, maybe a 30 year term but hey that house HAS made a huge amount of money over the years AND has never gone below the 8k they paid for it... in the long term im more than sure homes make money.
Also if you buy a house now, are lucky enough to get a tennant that pays the rent and so on, the rental will pay the mortgage if you get a repayment mortgage then of course, thats an investment as the hosue will be paid in x number of years.
Thats my 2p worth anyway.

thaylock

Sunnydays, which part of Scotland are you looking to purchase property ?

MissMoneysaver_4

this is a no brainer - you are making a smart investment which is your pension one day. you can only win and come out trumps in 25/30 years with a few properties paid off thanks to the tenants paying your mortgage. Better than ANY pension fund, seems like you've done the math. I plan to do the same shortly - good luck.

mylittlefriendbaxter

this is a no brainer - you are making a smart investment which is your pension one day. you can only win and come out trumps in 25/30 years with a few properties paid off thanks to the tenants paying your mortgage. Better than ANY pension fund, seems like you've done the math. I plan to do the same shortly - good luck.

Historically the stockmarket has far outperformed houseprices.

This isn't even taking into account poor future UK demographics, downward pressure on wages through globalisation and the fact you are probably buying at the peak of the largest asset bubble in living memory.

http://www.watsonwyatt.com/europe/pubs/longtermstats/render2.asp?ID=10991

johnfthetraveller

Sunnydays wrote:

I'm currently in the process of remortgaging my house to release funds which will then be used as a deposit for two Buy-to-Let mortgages. I don't intend to make any 'real' money from it as i'm hoping it will provide a more secure pension in years to come.
As there seems to have been an explosion in these type of mortgages recently I'm wondering if any Moneysavers have been down this route, and who would be willing to recommend any lenders who specialise in B2L's?

Hi Sunnydays. There is no objective BTL mortgage that can be recommended on the strength of what you've said here. I've got a bit of experience of BTL mortgages, and I would really recommend that you find a good broker to discuss the matter with you. A lot of Martin's guide to remortgaging is applicable for BTL's. At Martin's recommendation I've been dealing with London & County (I've been speaking to Adam Jones, whose fine). They'll guide you through all the options. If you want to shop around, the Mortgage board can put you in touch with on and offline options.

gallygirl

Check out Cheltenham & Gloucester - we have 4 with them, all discounted, they v good at allowing multiple applications.

You think Scotland cheap - try Northants!!!!