Advice Please - First Time Buyer and Renting Property

Discussion in 'Finance, Property, Law' started by adagio33, Aug 21, 2009.

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  1. I wondered if anyone would be able offer me some advice.
    I´m looking to get myself on the property ladder in the area I am from (North East London / Essex). However, I am currently posted away from the UK, but cannot afford the deposit required for a buy to let property (60 LTV is required), athough I have agood deposit. Has anyone had experience of buying a property with an owner occupier mortgage and then getting permission to rent? Is this feasable and did you experience any major problems?

    In addition is there a particular mortgage lender that anyone would recommend for doing this. For example the woolwich informed me that they would only allow me to rent the property for 2 years before I would be required to switch to a buy to let mortgage.

    Thank you in advance for any help you could give me.
  2. DON'T RENT TO STUDENTS!!! and I say that as one myself. Unwashed, verminous cretinous scumbags with no regard for anyone other than themselves. Other than that, good luck. With a 200k mortgage in London you should be able to by a pidgeon loft. Why not buy ooop north and with that sort of money you could buy Rutland.
  3. If you take out a mortgage on a property you've stated you will use as your main residence, but you're really going to be letting it out, you'll usually be in breach of your mortgage conditions and the lender has the right to call in the mortgage.

    That being said, lenders will often allow you to rent property out, but will charge you a few £££ for their admin and xmas party......
  4. Yes we are in the process of doing just that right now. We are borrowing from Royal bank of scotland on a 3 yr fixed rate 4.29 %. they have a special provision for HM forces and you can take out a conventional mortgage even if you intend to rent out your property. I explained the situation to them and it is fine. I found this out initially through a mortgage advisor who deals a lot with forces personnel but then went on line and did the application with them over the phone. Also Nationwide do the same for HM forces but their rates were not quite as good. Saved ourselves a lot of money as the cheapest buy to let we could get was 6.29% and a £2000 set up fee. Hope that helps you. P.s There are no extra charges ie admin fees when you inform them you are letting it out. They understadn how the forces work and will give you a consent to lease for no charge or penalty.
  5. good post dawnyp, some useful info there
  6. samm1551

    samm1551 Old-Salt Book Reviewer


    What Dawn has advised is pretty sound. However what I will say (and I am a qualified mortgage advisor) is be extremely careful if you get a residential mortgage instead of a buy to let because some mortgage companies will want you to have lived in the property for a set period of time before renting it out. Otherwise they could construe your mortgage application as fraud. That is not me being a scare monger that is a fact. I own a home that I now rent out and my mortgage is with HSBC, however I lived in the property for 7 years, had the mortgage with them for 5 years before I asked to rent it. They will allow me to rent the property out for 3 years without me having to re-mortgage on a buy-to-let basis.

    I know a couple of very good independant financial advisors in the area you are from that will be able to help you. If you want the details PM me and I will give you their name and number or email. I hasten to add that I do not and have never worked for them, however most of my family are customers of these advisors, and most have served at some point.

    Sam x