Buy-To-Let Mortgages?

**wizer** · 11th August 2003

Hi

Has anyone here ever done a buy-to-let? Me and the GF have seen a cheap flat which is a good price and would like to buy it to rent out. Thing is we have little or no fund availible for deposit so would be looking at 100% mortgage. Would this be possible? Any advice?

ta

**sjunky2000** · 11th August 2003

With a buy-to-let mortgage you normally need about a 15% deposit and your rental income has also got to be at least 125% of your mortgage,, if you give me some more info i can get something sorted for you,

1) where do you live at the moment i.e house flat, owned rented

2) Are you and your girlfriend full time working.

**MARK133** · 11th August 2003

Another option is to release the equity in your house to subsidise the deposit.

**urbsy** · 11th August 2003

Another option , rather it be a sneaky one , is to tell them you are renting out your old house and buying the new one to live in.

urbsy

**Fett** · 11th August 2003

Can anyone tell me the differnece between a Buy To Let mortgage? Could I just get a standard mortgage and just rent it out anyways?

**coin-op** · 11th August 2003

Originally posted by Fett
Can anyone tell me the differnece between a Buy To Let mortgage?

And a what?
Joking aside, the lenders will come down hard on you iff you do not disclose that you are going to let and subsequently find out.
If I recall correctly when I took out my mortgage the lendr would charge an extra 1% if I told them I was going to let the property.

**wizer** · 12th August 2003

thanks for your replies guys

The property is a 1 bed flat in another town right on top of the Rail Station which is 30mins from the Centre of London. I am currently living on my own with a 125k mortgage and my GF lives with parents. We both are in full time employment. The problem is we do not have any deposit and so i think this is all a pipe dream. When I got my mortgage I heard of companies giving you a Loan for the deposit, but this would be detrimental to the whole project. The Deposit will be somewhere in the region of 7k but I could only pull about 1k out of my arse for this. A Loan would prolly work, but the re-payments will make it very hard to earn any money from the retn (if any)

i am going to talk to a few mortgage co's over the next week to see wht my position is.

Cheers lads

**Yazmon** · 12th August 2003

Be carefull though!

The bottom has recently fallenout of the letting market. You may find the rent you have to take is less that the mortgage repayments...

**wizer** · 12th August 2003

yer I agree. As long as it just sits and pays for itself i will be happy. It will basically be a way for saving for our future. i'm not looking for monthly profit

**MajorFU** · 12th August 2003

Originally posted by wizer
. i'm not looking for monthly profit

u feeling ok m8

**wizer** · 12th August 2003

lol im serious m8. The idea is to have the rent pay for itself so that in 5 or 10 years we can sell the flat and use the capital to put towards a new house or a business that will mean we can pack up work. The idea is not to get rich off skimming profit off the top.

**sjunky2000** · 13th August 2003

@wizer u could put the property in your girlfriends name as a first time buyer (is she) and possibly get away with a 100% mortgage with quite a high interest rate and have the property transferred to both names after the tie - in period, or you could release some equity in your existing property if you have any and put down the money from that.
What id recommend is give me a call I know a few mortgage guys who aint dodgy but they can bend the rules in our favour ill PM u my number.

P.S - as one of the guys said earlier the lettings market is very unstable at the moment where I work we are having a difficult time so think twice as u could get lumbered with some sizable debts!!!!!!!!

**wizer** · 14th August 2003

cheers sjunky. this is good advice and i will be looking into it. Getting the 100% mortgage under her name makes sense. To cut costs after we buy the flat I will try to rent it without an agency. This should cut 10% off my costs. All I have to do now is convince the missus to get the mortage in her name.

Time is a factor too..... I'm so busy atm I dont really have time to get it all sorted.

Keep u updated.