baza31
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Registered: 19th Apr 03
Location: yorkshire
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As above . I know banks don't lend alot these days but surely it's still possible. Am I correct in thinking something along lines of
Buy property 1 - get a decent amount of capital ie 25% of what it would cost for
Property 2 on a buy to let , over maximum years or interest only. Again save 25% for
property 3.... And so on
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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My missus had a 3 storey townhouse and I had my 3bed semi when we got together. We've converted her townhouse into 2 flats which are both now rented and she's converted to a btl, interest only mortgage. When her Nan died she got a small amount of inheritance which I matched to buy another townhouse already converted into 2 flats, that was bought on a buy-to-let, interest only mortgage too. Both rental properties are full with the excess between rental income and mortgage, tax and bills etc., 50% pays chunks of capital and the other 50% is being saved towards the next one; I like the idea of another converted townhouse as its a single mortgage but two forms of income, however, there are loads of flats coming onto the market in my local town for between £45-60k which are relatively big, 2 bedroom, 2 bathroom, secure parking, managed building flats and I quite fancy one of them. We have a little bit of spare cash from when we downsized the disco to her current TT which will go someway towards the next round of deposits
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baza31
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Registered: 19th Apr 03
Location: yorkshire
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So say for example house 1 was paid for and drawing rent house two had a mortgage which could be rented , then I wanted a 3rd place which was worth what property 1 and 2 is worth combined. House 1 full value would be worth approx 40% of house 3 value. Also if I dropped to interest only can you still pay chunks off if possible.
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Rob_Quads
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Registered: 29th Mar 01
Location: southampton
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Note you will have trouble getting interest only now unless you can prove a repayment vehicle. In the last few months they have really tightened up on this.
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AndyKent
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Registered: 3rd Sep 05
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Not sure if that's strictly true.
For buy to let maximum return on capital invested is when the mortgage is at a high level. At the same time, the banks make the most off us when we are paying interest.
By that reasoning, they don't care if you pay it off or not. If it reaches the end of the term and you don't have the cash, they'll happily sell you another mortgage.
They only care about a gap opening up between value and their investment which they wouldn't get back if the property is repossessed.
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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We have our next mortgage in principal offer already and had no issues getting interest only for a BTL. That said we have 2 other mortgages with the same company and security across the other properties too.
Not sure how a first time buyer/landlord would fair though
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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quote:
Originally posted by baza31
So say for example house 1 was paid for and drawing rent house two had a mortgage which could be rented , then I wanted a 3rd place which was worth what property 1 and 2 is worth combined. House 1 full value would be worth approx 40% of house 3 value. Also if I dropped to interest only can you still pay chunks off if possible.
best to speak to your lender, they might want to unlock some of the value of property 1 to fund property 3 or they might just group together the liability.
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baza31
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Registered: 19th Apr 03
Location: yorkshire
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quote:
Originally posted by LiVe LeE
We have our next mortgage in principal offer already and had no issues getting interest only for a BTL. That said we have 2 other mortgages with the same company and security across the other properties too.
Not sure how a first time buyer/landlord would fair though
what you mean security?
apparently they only give you a maximum of 80% of house 1 which will easy cover the deposit on house 3.
no equity in house 2 as its literally just been bought . id say be a few months before it could be rented although this doesnt have a btl mortgage .
out of interest what sort of monthly figure roughly is interest only on 100k borrowing ?
could you merge all houses into one big mortgage ? i really need to get to bank and have a word with them.
the problem gets tricky if other two become empty then the repayments get stressfull
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RichR
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Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
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house 2 is secured against house 1; that way we didn't have to pay as big a deposit but still got a reasonable rate of interest. They're both now paying capital back so once they're above 30%+, I'll look to possibly remortgage with another lender if its attractive enough to move..
Don't know about merging mortgages into one, you'd need to speak to your mortgage lender.
As for the issue about paying the mortgage when they're empty, thats why I like converted townhouses. Both of our's have two flats in so 4 sources of income but only 2 mortgages. I can lose 2 tenants and still more than adequately cover the mortgage. If I buy the single flat, I'll be stuck with the mortgage and bills if its empty
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baza31
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Registered: 19th Apr 03
Location: yorkshire
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Yeh my only worry is 3 mortgages which seems a bit extreme . Suppose it depends on rental income, and outgoing figure. Going to go to bank on Monday . In a sense it's shit or bust. Really I suppose best idea would be to get a equity from house 1 to pay for deposit on house two and have house 1 btl and live in house 3 and change house 2 to btl .
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VegasPhil
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Registered: 16th Jan 05
Location: Fareham, Hants Drives: Octavia VRS
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Interest only mortgages are how most do it and overpay a chunk off. Repayment vehicle will be sale of second property etc.
Corsa 2.0 16v Vegas - Sold
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baza31
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Registered: 19th Apr 03
Location: yorkshire
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quote:
Originally posted by VegasPhil
Interest only mortgages are how most do it and overpay a chunk off. Repayment vehicle will be sale of second property etc.
Yeh that's what am thinking . Although I am doubtfull bank will lend me another 180k especially as house 1 which I'd need to remortgage is only worth 80k. I need to work out the figures but with interest only I am certain I could easy cover the lot. Trouble starts when I have to pay them off. What's interest rate roughly on btl interest only
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mattk
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Registered: 27th Feb 06
Location: St. Helens
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save up decent deposits like I have, Ive put a 30% deposit down on both mine/
Northern rock said we could have £210k on BTL based just on my partners £42k income. they didnt even have to look at mine, as Im self employed
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