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ktuludays
Posts: 368 Forumite
Some advice please.
We wish to purchase our first house and rent it out.
We currently live in a house that is part of my job, so we do not want to live in the new house but wish to get our foot on the ladder.
Looking at buy to let mortgages they assume that you are buying a second property and ask for 20-25% deposit.
Can we get a reduced rate with it only being our 1st property?
Could we get a normal mortgage and then let the house further down the line eg six months or does the mortgage have to be buy to let?
your help will be appreciated
We wish to purchase our first house and rent it out.
We currently live in a house that is part of my job, so we do not want to live in the new house but wish to get our foot on the ladder.
Looking at buy to let mortgages they assume that you are buying a second property and ask for 20-25% deposit.
Can we get a reduced rate with it only being our 1st property?
Could we get a normal mortgage and then let the house further down the line eg six months or does the mortgage have to be buy to let?
your help will be appreciated
You got to get through what you've got to go through to get what you want but you got to know what you want to get through what you got to go through.
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Comments
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It may be an unethical answer to your question from me. However, I feel it is correct!!
As you are a first time buyer I would not even discuss the option of letting out at this stage. ( No lies as of yet and so no crime!!).
Look to purchase a house as a FTB and follow all legal issues. Then in six months time or whenever suits you, contact your lender and outline your plans to them. ( no lies again so no crime and following the correct procedure).
Why mention about a buy to let when you have not even purchased your first home for yourselves yet? All you are doing is looking at the possible future options but these are for you, nobody else so keep them as thoughts at this moment in time. Abit like a blueprint for the future!!
No lender is interested in what you plan to do with your life in the future, they could not care less. All they want to know is what do you wish to borrow and can you pay it back. They do the relevant checks and say yes or no.0 -
ktuludays wrote:Some advice please.
We wish to purchase our first house and rent it out.
We currently live in a house that is part of my job, so we do not want to live in the new house but wish to get our foot on the ladder.
Looking at buy to let mortgages they assume that you are buying a second property and ask for 20-25% deposit.
Can we get a reduced rate with it only being our 1st property?
Could we get a normal mortgage and then let the house further down the line eg six months or does the mortgage have to be buy to let?
your help will be appreciated
You have to tell your mortgage company if you bought on a residential basis, then wish to let the property, I have been led to believe. In the small print somewhere. They might let you, but they might say "we want a bigger deposit before we'll let you", in which case you're back where you started.
As asked by the other reply, why do this before buying your 1st residence?Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery0 -
B2L mortgages generally require at least 15% deposit with all the rental numbers stacking up. I wouldn't suggest buying as a first time buyer unless you plan to live there yourself. You will be required to tell your mortgage provider as soon as you start to rent the property out and if you don't you may come unstuck with the insurance. There are so many aspects to cover with a rental property that it is not worth decieving any organisation that has contributed to you securing a property because eventually you will have to lie to them all to cover yourself. If you really want to know what is best, speak to your accountant so you understand what the outcome can be.0
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BTL is normally a minimun 15% deposit .Some lenders do not give for BTL .
Your interest rate will be a bit higher for BTL .Most BTL's are done on an interest only basics .So if you borrow !00,000 in 5 years you will still owe £100,000 .Either as a residental mortgage or a BTL mortgage make sure you have BTL insurance .0
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