FTB to let to students while continuing to rent elsewhere??

PasturesNew

If you aren't going to live in it, yes you need a BTL mortgage.
For a BTL mortgage you will want a big deposit (being provided as per your edit). Lenders are specifically and absolutely looking out for this type of deposit and will take action.

Watch who is valuing the property. Be careful who the solcitor is - they might be in on it too. Don't trust anybody you haven't independently sourced.

Check and double-check that the mortgage will be covered by the rent to the tune of 125% minimum. Don't take their figures as gospel. Don't trust their accounts.

A previous poster said in their area the Uni had built their own halls - all the landlords in that area would be able to show good return/rents for last year, but there will be no students in the future.

Research, research, research. Trust nobody.

Walk round the area. See if you can get to speak to students and find out how much they're paying and if they'd rent that property - if not, why not; if yes, how much for.

You are dealing with crooks.

Also - student rents are often calculated just 10 months of the year. Be aware of this.

And remember: research, trust nobody, you are dealing with crooks.

m00m00

lot's of HMO's in prime student locations in nottingham coming onto the market now.


rats deserting a sinking ship

DawnW

silvercar wrote: »

You will have problems finding a lender to agree a BTL mortgage to a non-home owner; I think there are only a couple of lenders that will do this.

I had no problems at all doing this. Our circumstances are a bit unusual and we had a big (more than 50%) deposit, but a wide choice of possible lenders including high street names. We now have a BTL repayment mortgage with C&G, and this is our first property, absolutely no fraud, truthful answers to all questions. It was the best deal available, and we were given AIP straight away, and it all went through easily when we did the full application. It was all done on our income as well, no questions about rental yield etc. We did / do not want to be BTL landlords, more pushed into it really. The reason we bought is because we live in a property tied to my OH's job, and this is intermittently insecure. This has been going on for years and years, and I am just tired of it. If his job goes, we will have somewhere to live once the tenant leaves. We realise this will take time, but have been upfront with tenants. and will simply stay in our current accommodation until it is convenient for them to leave or we have to go to court for repossession or whatever, and then we can change to a residential mortgage of course, because they are a bit cheaper. Not an ideal situation, we would like to just live in it like anybody else - hell, I don't even LIKE BTL, and I love the house! However, given OH's job situation at the moment, we don't want to rock the boat by asking for his contract to be changed, which would be necessary in order for us to do this.
Not a typical situation, but shows that BTL mortgages are obtainable by non home owners. In fact A&L, my own bank, also offered AIP immediately over the phone, but we got a better deal through our broker (no fees, no overhang etc).