Buy to Let for First time buyer?

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  • geosword
    started a topic Buy to Let for First time buyer?

    Buy to Let for First time buyer?

    Hi Everyone.
    I own a house, but having inherited it, have never had a mortgage on it or indeed any other property. Now I want to invest in property, and buy a house with the view to letting it out. However I see that most of the mortgage lenders insist on you having had a mortgage before you get a buy to let mortgage. Does anyone else have experience of this and if so, how did you get around it?
    I have enough money saved that I would only need 70-75% mortgage.
    Thanks
    Dylan

  • Gordon999
    replied
    If you have had a mortgage before, the mortgage lender can check your monthly re-payment record as they don't want to lend to any person who is proven to be an "unreliable payer". It may help you if you have bank statements to show you are a good consistent saver.

    Even if you can raise the 25% -30% initial deposit, you still need to keep some savings in reserve in case (1) your tenant stops paying you - such that you can still meet your monthly mortgage re-payments (2) rental demand in your neighbourhood is poor and taking a long time to find tenant.

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    loanarranger
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  • Reply to Buy to Let Exodus to flood Housing Market
    hech123
    Again agreed but they have a hell of a lot either currently being built or in the process of being built. What levels it off is they are also selling huge amounts of older stock in many areas.

    It will probably be a combination of everything (as it always is). Just google the rise of 100%...
    27-05-2018, 12:46 PM
  • Reply to Buy to Let Exodus to flood Housing Market
    boletus
    Interesting stuff Hech.
    I would point out though that the social housing sector isn't increasing either (ok, a couple of thousand increase in 2016/17 if being pedantic).
    27-05-2018, 10:58 AM
  • Reply to Buy to Let Exodus to flood Housing Market
    hech123
    Very true but the PRS sector can not keep growing forever. Chances are as mortgages become more readily available you will also see an increase in owner occupiers. Many banks are re capitalizing and lending is becoming more competitive. Social housing will also increase I think as there is certainly...
    27-05-2018, 10:23 AM
  • Reply to Buy to Let Exodus to flood Housing Market
    boletus
    If they are buying Hech, it is not enough to make up the shortfall.
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    More to the point, the PRS has stopped creating more...
    26-05-2018, 08:18 AM
  • Reply to Buy to Let Exodus to flood Housing Market
    hech123
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    hech123
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