can i get a buy to let mortgage in the uk ? putting a 30 % deposit down if i am an overseas resident? I would like to buy in central london ? with the recession is it a wise move ?
2 Comment(s)
Generally speaking property is always a good investment. At the moment you should be able to pick up property at a reasonable price so that there’s gain to be made in the longer term from the increase in its equity.
Getting buy to let mortgages is not as easy as it was and I’m not sure how lenders are about overseas residents. They need borrowers to demonstrate a high level of return from the rental before they’ll consider lending.
If you can turn your deposit into a 35% one it may help your chances of getting a mortgage.
It has always been wise to buy to let. The people who burned their fingers were those that took excessive risks by borrowing beyond their means and looking for a big profit. Landlords, contrary to popular opinion, do not make huge profits. It is a business which, to be successful, has to be run properly. Many buy to let landlords hadn’t a clue how to be a landlord once they had acquired a mortgage. If you employ a letting agent, which it seems you might, they will want their pound of flesh. If the tenants are chosen poorly, which agents do, you may find they stop paying and you have no income to pay your mortgage and your property may well have suffered damage. 30% deposit is too little as the balance will mean a hefty loan which again puts you at increased risk. My advice is, if you want to be a landlord, do your research. Link below. It is not an easy venture and you need to have really good tenants for it to work. These are few and far between.
Generally speaking property is always a good investment. At the moment you should be able to pick up property at a reasonable price so that there’s gain to be made in the longer term from the increase in its equity.
Getting buy to let mortgages is not as easy as it was and I’m not sure how lenders are about overseas residents. They need borrowers to demonstrate a high level of return from the rental before they’ll consider lending.
If you can turn your deposit into a 35% one it may help your chances of getting a mortgage.
Good luck!
Rosemary P | Feb 22, 2010 | Reply
It has always been wise to buy to let. The people who burned their fingers were those that took excessive risks by borrowing beyond their means and looking for a big profit. Landlords, contrary to popular opinion, do not make huge profits. It is a business which, to be successful, has to be run properly. Many buy to let landlords hadn’t a clue how to be a landlord once they had acquired a mortgage. If you employ a letting agent, which it seems you might, they will want their pound of flesh. If the tenants are chosen poorly, which agents do, you may find they stop paying and you have no income to pay your mortgage and your property may well have suffered damage. 30% deposit is too little as the balance will mean a hefty loan which again puts you at increased risk. My advice is, if you want to be a landlord, do your research. Link below. It is not an easy venture and you need to have really good tenants for it to work. These are few and far between.
Bazza | Feb 25, 2010 | Reply