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Buy to Let - do I need it for one year?
Jazzking
Posts: 288 Forumite
Afternoon, I wonder if one of our resident advisers could let me know where I stand on this?
Myself and my partner are FTB, with a combined salary of £28k. Nationwide will give us a regular mortgage of £86k with a £10k deposit, or £88k if I use some of the deposit to pay off some debts (but would then be on a higher interest rate due to only haveing £7k deposit)
We've found a property that we both like, that is currently inhabited by students until July 2006. The property is going up for auction on 14th Sept, but at the viewing the vendor said that he would accept an offer and take it off the auction. The auction guide price is £100k-110k, but presumably an offer outside of auction might be more attractive since he doesn't have to pay as much commission(?)
My question is, if we made an offer before the auction (and was accepted) or if we actually went to the auction and won (we would have the 10% depsot required) would we need to have a BTL mortgage, or would the standard mortgage be OK, since we know the students will be leaving in July and then myself and my partner would move in (currently renting atm)
The students currently pay £35-40/week so between 5 of them that would easily cover our mortgage payments for that first year while we rented, but we couldn't muster a large enough deposit to even consider a BTL mortgage so was wondering if our intention was to move into the property ourselves 10 months after we bought it, would we still need to go down the BTL route?
The current owner runs a student-housing group in Lancaster and owns several properties, so he may agree to still be classed as 'landlord' and take a cut of the rent for being responsible for the students while we just owned the house - would that make a difference?
Lots of questions I know, hope you can help!
Thanks,
Alex
Myself and my partner are FTB, with a combined salary of £28k. Nationwide will give us a regular mortgage of £86k with a £10k deposit, or £88k if I use some of the deposit to pay off some debts (but would then be on a higher interest rate due to only haveing £7k deposit)
We've found a property that we both like, that is currently inhabited by students until July 2006. The property is going up for auction on 14th Sept, but at the viewing the vendor said that he would accept an offer and take it off the auction. The auction guide price is £100k-110k, but presumably an offer outside of auction might be more attractive since he doesn't have to pay as much commission(?)
My question is, if we made an offer before the auction (and was accepted) or if we actually went to the auction and won (we would have the 10% depsot required) would we need to have a BTL mortgage, or would the standard mortgage be OK, since we know the students will be leaving in July and then myself and my partner would move in (currently renting atm)
The students currently pay £35-40/week so between 5 of them that would easily cover our mortgage payments for that first year while we rented, but we couldn't muster a large enough deposit to even consider a BTL mortgage so was wondering if our intention was to move into the property ourselves 10 months after we bought it, would we still need to go down the BTL route?
The current owner runs a student-housing group in Lancaster and owns several properties, so he may agree to still be classed as 'landlord' and take a cut of the rent for being responsible for the students while we just owned the house - would that make a difference?
Lots of questions I know, hope you can help!
Thanks,
Alex
0
Comments
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If it is not your main residence, as most applications ask, you will need a BTL mortgage.
You will also need to find a lender that is happy with student lets, and potnetially need to find a 15% depositI am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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