Buy To Let Mortgage

Lorne

Hi there,

Just wondered if anyone had any experience of buy to lets? We have inherited some money and are thinking about putting it into property but are a little anxious about how the market is currently looking.

My questions are

we remortgaged in March will that affect our ability to get a B2L mortgage?
I'm struggling to get an idea of repayments from the internet to see if we could afford it, any suggestions?
Is it just a really bad time to be doing this?

Any help appreciated, this is new ground for us.

Browntoa

I'd personally sit on the money for a while and see how the market goes for a few months

Lotus-eater

Wouldn't you just be better paying off your debts? Or at least your non student loan debts

bobby-boy_2

Hi Lorne bank the cash in a high interest account if you need access to cash or pay off your debts/ mortgauge with the money. BTL returns are not great at the moment and their can be hassle associated with them.

Lorne

Thanks for the advice, I'm thinking that hanging off on the property may be the best idea and I'll pop across to savings to look at the best place to put the money.

The money we are looking to invest is a fresh start so we don't want to pay off debts with it. We are going great guns with the debts and will be debt free in the next year so wanted to keep this separate.

mpsavuk

Lorne wrote: »

Thanks for the advice, I'm thinking that hanging off on the property may be the best idea and I'll pop across to savings to look at the best place to put the money.

The money we are looking to invest is a fresh start so we don't want to pay off debts with it. We are going great guns with the debts and will be debt free in the next year so wanted to keep this separate.

Probably the right decision. I'm no expert but with your debt history and current amount of debt outstanding i doubt lenders would be willing to lend to you anyway.

Lorne

mpsavuk wrote: »

Probably the right decision. I'm no expert but with your debt history and current amount of debt outstanding i doubt lenders would be willing to lend to you anyway.

Debt history (property rennovation) and debt outstanding is fine (cars and 3 student loans) so I don't think that is an issue. Mortgage advisor has told us this pm that if you have the deposit it is easier to get a buy to let mortgage than getting a repayment or interest only mortgage. We have taken the decision this pm after speaking to our mortgage advisor that we'll hang off, invest it and make a decision when the mortgage market settles a bit.

Thanks for the input.

neas

payng off your debts as someone else said would be the best way to save money...

Lorne

Unfortunately paying off our debts with this cash isn't an option, needs to be used for an investment. It'll need to sit in savings until either the housing market settles or we think of something constructive to do with it!

We are not struggling with our debts (although it would be lovely to be debt free) and should be debt free in 13 months.

neas

Why isn't it an option?

You do realise that generally debts rise higher than any 'savings' or investments. Making a gain from a house will likely take 5 years wait at the very least... they will drop... drop and then stagnate some... then crawl back up.

At least pay the cars off.... student loans leave them as the savings will grow more than the student loans (so long as they are the 4.8% ones)

SouthCoast

May I suggest that you work out how much interest you have actually paid to your lenders in the last year. Divide the figure by 12 and compare it to your monthly income.