1at Buy to let...

neas

go for it i say .x

slipthru

That has got to be the worst idea i have seen, you don't even have a deposit.

silvercar

Conrad wrote:

Chris the B2L mortgage can be done for a FTB, I've just done one!

Interesting, I stand corrected. Is this a lender's general rule or a special case?

A friend was considering transferring their BTL to their son's name but thought they wouldn't be able to as the son wans't a owner occupier. Which lender would consider this?

Captain_Mainwaring_2

Conrad wrote: »

Chris the B2L mortgage can be done for a FTB, I've just done one!

Its unlikely it will be casahflow positive once you factor in all costs such as the lost interest as a result of taking your savings out of a savings account and the interest payable on the £15000 loan you intend taking.

Should you decide to take a separate loan it might be considered better to do this after you had a mortgage offer.

Taking what saving off of deposit ? - he is firmly in the red.

fc123

Just bumping. Have you done your hours 'homework ' today?
I'm not being patronising or anything, but having pottered around here for the past few months, I have learnt so much and have picked up so many different viewpoints.
Ultimately, one has to sift through all the info and make ones own conclusion.

The sums are big. If it was in £££ notes under the bed, would this still be your preferred investment?

fc123

Captain_Mainwaring wrote: »

Taking what saving off of deposit ? - he is firmly in the red.

With respect to Conrad, his living is made from selling loans and mortages.

I sold a frock today. It's a lovely one too, but the customer who loved it was a little squat for the style.
However, she didn't look that bad and I needed the £69.90.

A little push....... she bought it. It wasn't the perfect frock for her as she probably should have gone for a different shape but it wasn't a disaster either.

Pobby

Just heard there is a new development in South Baghdad. 15% discount, off plan. Sounds like a goer!!!!!!!!!

phil_b_2

fc123 wrote: »

Don't do anything for 7 days.
Log onto this forum and the sister house prices one, once a day for an hour and read as much as you can bear. Read all different types of posts.
Then re-consider your position.

FWIW I would say that you will end up over-borrowed. Just because the sums work out on paper, doesn't mean they will go to plan in real life.

Just 7 days.

I would say that these forums will actually give a very skewed and biased view. He would be better off researching proper facts and figures in his area IMO.

How many people are out there with BTL properties? how many of them come on here and say they got it wrong and are losing money? A micro percentage at best. even then, only people who are in bother will post. Folk who are making money doing fine wont come on here and talk about it.

the same is the case for lots of forums for different subjects, which presents a very wrong impression of the issue at hand. You can definately do damage by reading up on internet forums too much!!

goldenchris

Thanks for all advice and opinons,

Believe it or not, no decision is or has been taken lightly and figures will/are being investigated thoroughly.

The structure of finance and mortgage will mean I have the 15%deposit effectively tied up in property as buying for min 12% below valuation, with remaider 3% being put up by myself, remainder are other fees are associated with purchase (solicitors etc blah blah). My problem has been coming up with a full initial 15% deposit for the B2L requirement.

the 15k borrowing I mentioned, was really just a way to lump all house borrowings and existing debts into one loan, eg, 7.5 k personal and 7.5k on the house purchase. so its really a 7.5 k (additional) loan as rest is already "loaned" in form of plastic and overdraft debt.

Property is assumed tenanted at this point, with rental income more than covering the mortgage. Tax implications are also being considered at this point. The Personal Loan is not being factored in, as I am taking this on purely as a personal loan, which I suppose is an investment in a very skewed logic.

My aim and strategy is to purchase a property which will in time increase in value. I understand that the pitfalls of negative equity are not to be taken lightly, but at the purchase level below 100k, I feel more comfortable with risk exposure, than say buying a 200k flat in London.

its really part of a long term strategy to have a propery in place for when markets become bouyant again.

Nothing here is a done deal and the purchase itself is entirely something I need to investigate and do the figures on to see potential outcomes dependant on future market fluctutations etc.

Concerning no tenant, it wouldn't be the best, but could afford to pay mortgage in worst case scanario. hence my wanting to purchase a property with lower mortgage payments.

My main concern and point of post, was really if my current personal financial situation would prohibit a B2L mortgage approval and if taking out a loan before the purchase would be destroy the chances again of being approved.

Further to that, taking a loan out AFTER the purchase may be an option again, only worry being what if I don't get a loan approval having just forked out for an investment property, therfore being unable to rapay money borrowed from friends & family etc.

Again, thanks to all for the input.

the_bread_baron

goldenchris wrote: »

I hope that somebody may be able to give me some advice.
Property is cashflow positive when rented and am happy with the figures.

Chris.

depends who told you about the positive rent.
the mortgage will be around £600 pcm.


can you really get a REGULAR 600 pcm for the next 5-10 years in the NE.?
with increasing unemployment and social benefit limited to only ma £70per wk,
id say the rent projection is optimistic, if not outright dangerous.

im wondering if you did your own research about what people currently pay to rent this kind of place
or have you been on some spivvy B2L course whos directors are about to swindle you out of your savings.
**see the other ladys thread about her failing B2L. shes losing £420 pcm.

its the shape of things to come. FACTS:
this house will be worth half in 3 years.
tenants at 600pcm - thin on the ground.
interest rates - much higher.
jobs - scarce.

this is even before boilers, and repairs and defaults and tenant damages. legal issues etc.

dont get ripped off. stay out of it.
its collapsing.