Hi, I'm hoping to buy a property to let out as I have just finished paying off the mortgage on my own house, & would like to invest in another property now that my own property is mortgage free. To do this what options do I have mortgage wise? Do I absolutely have to take out a buy to let mortgage, or could I take out a normal mortgage with consent to let? Could I remortgage my own house to fund the purchase of the property I hope to buy? If the only option is to get a buy to let mortgage I do have 25% deposit, but I don't understand the concept of the rental income needing to be 125% of the mortgage rate? If I get the property I am looking at for the asking price & paid a 25% deposit the amount of mortgage I would need would be equivalent to 1 yr of my current salary. So basically I hope to buy this house & pay the same amount on my mortgage as I paid on my own house, then using the tenancy income as overpayments on the mortgage so that I could pay it off in a 5 yr term. I would therefore want the facility to overpay on my monthly repayments, which is what I did on my Nationwide mortgage on my own house. I'm also wondering if it would be possible to extend my own mortgage to borrow the amount I need to purchase the new property, but have already received the letter from Nationwide telling me my mortgage is now fully repaid & that it will now be closed. I would also appreciate if anyone could outline to me the tax repercussions of becoming a landlord, as I have never had to do self certified tax returns before etc. I am in full time employment. The amount I need to borrow is likely to be in the region of £35k. My own house is worth in the region of £115. Would really appreciate any tips on which type of mortgage I would be best getting, as well as any opinions on hidden pitfalls I may be missing here. Thanks.
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