Building My Portfolio

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    Building My Portfolio

    Hi - new member to the forum hoping for some help.

    Currently have 1 property in Sheffield that i got for a bargain (was on at £85k eventually bought for £43k - made my bid, rejected - left it open on the table and a few months later got a call asking if i wanted it still)

    I have had the property a few years, being young i didnt save very well after that and 'lived the life' for a bit - bought a car, clothes etc

    I am looking for some advice on whether i should remortgage to fund another deposit - currently on a residential mortgage as i lived in the property for 6 months then decided to rent it out to build a portfolio but i have a consent to let through Natwest.

    I wondered what peoples experiences where with lending more money/releasing equity in there properties.

    I have seen another property in the student area that i am looking to capitalise on and hopefully get a decent return on it and build from there turning it into a full time business.

    Thanks in advance.

    #2
    MarcusAlex

    First question , where are you presently living if you are presently renting our your main residence albeit with Consent to Let by Nat West. I ask this as not all lenders consider individuals who do not own and live in their main residence so the selection could be limited.

    Assuming the first can be satisfied I would seriously suggest using the Free Equity in the property to fund the deposit on the new purchase, however you might find that Nat West will insist that your mortgage be converted to a conventional Buy to Let and pay a commercial rate in order to obtain additional funding , should this be the case then a good broker can research the market and provide funding solutions for the primary refinance and what is available to purchase a student let (remember not all lenders are keen on this type of renting and conditions may apply)

    Comment


      #3
      loanarranger,

      Solid advice

      Comment

      Latest Activity

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      • 90 LTV investment advice?
        diseasex
        HI guys, I'm new to this forum and new landlord.
        I have 1 property I bought few years back at 75 ltv but since moved out and renting it, whilst still at residential mortgage.
        I'm currently buying another house at 90LTV with intention to rent out and seek consent to let in few months....
        22-09-2019, 18:56 PM
      • Reply to 90 LTV investment advice?
        AndrewDod
        Good luck again with the swan
        22-09-2019, 22:34 PM
      • Reply to 90 LTV investment advice?
        diseasex
        Gosh. What is it with these forums
        My strategy is to own 2-3 90 LTV properties at any given time (if that's even possible) and overpay them quickly within 2 year fixed period to 75LTV then turn them to interest only potentially. Comprende? That’s not rocket science jeez. All you do is ‘what...
        22-09-2019, 21:58 PM
      • Reply to 90 LTV investment advice?
        AndrewDod
        Yes, just like that...

        You: My strategy is to own 10 properties at 90% LTV
        Mr Bank manager: That sounds like a plan
        You: The properties will be £100K each and I will pay £10K of that. The rental yield will be 4% and all expenses around 1% of V.
        Mr Bank manager: That...
        22-09-2019, 21:50 PM
      • Reply to 90 LTV investment advice?
        diseasex
        Do you know anyone that tried perhaps? Or is this rule written anywhere? I’m not trying to be rude, just looking for information.


        ​​​​​​​now that is hard to believe to lose property just like that...
        22-09-2019, 21:10 PM
      • Reply to 90 LTV investment advice?
        AndrewDod
        No but lenders will care about that and your first 90% LTV is likely to be your last. Again, the best of luck.

        A 50% drop on a few 90% LTVs mean that you are in the red to the tune of 40% of the total value of your portfolio. I'd call that pretty much "ruined" with no way out...
        22-09-2019, 21:01 PM
      • Reply to 90 LTV investment advice?
        diseasex
        Thanks I’ve already done that. Even 50% drop wouldn’t ruin me, I’m placing a bet on certain area and not your business what I’m doing with my money and what’s my risk appetite or strategy to reduce risk

        now back to original question: is having multiple 90 LTV mortgages possible...
        22-09-2019, 20:54 PM
      • Reply to 90 LTV investment advice?
        AndrewDod
        Good luck with that small irrelevancy...... you might want to go and study a little economics and history as leaseholder64 suggests...
        22-09-2019, 20:49 PM
      • Reply to 90 LTV investment advice?
        diseasex
        Yes. Then seek consent to let in 3 months.

        If it's a car crash, tell me how.

        I was actually thinking of buying half repayment , half interest only portfolio, but actually have more properties faster than saving for huge deposit and SDLT for BTL each time...
        22-09-2019, 19:31 PM
      • Reply to 90 LTV investment advice?
        leaseholder64
        It was highly leveraged investment, not so much the actual stock market fall, that bankrupted people the great Wall Street crash.

        Also, have I misunderstood you, or are you pretending to buy as owner occupier?
        22-09-2019, 19:28 PM
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