almost ready for my first mortgage.... B2L

[richierex]

I currently own a business which i have built up over the last 4 years. Due to this im running a little slow as far as the property market is concerned.

Anyway, i intend my first mortgage to be a house which an employee will rent from me. As this is my first house should i get a buy to let mortgage as my first or just a regular one and transfer it all around when i get my second mortgage on my own home?

[Raja]

i'm sure you'll get a better interest rate if you bought it for yourself. you could always get permission to let off the mortgage company afterward. last i looked the deposit levels and interest rates were rather high on a b2l.

also make sure the potential rental income per month comes upto (i think) 125% of the interest only mortgage payment.

i'm sure one of our money experts will come along and offer you more detailed advice soon enough,

[ARphotographs]

i know with santander you can change a residential mortgage to having concent to let by just phoning up, as long as you're mortgage is over 6 month, not in arrears or a flexi mortgage then they can give the concent over the phone. There is a £295 fee but that can be added to the balance of your mortgage. The fee pays to keep your mortgage as it is, say you're on a 3.5% deal, this means you would keep that deal for its duration before going to SVR. If you were to get a buy to let then it would have a higher deposit required plus most BTL rates are higher than SVR

[scotal]

As an FTB you will have trouble securing a BTL mortgage. Most of them are not available to FTBs.
However if you decide to go down the residential route you will have to choose your lender with care. Most will not be happy that you're letting the house out form the start.

[scotal]

Raja said:

i'm sure you'll get a better interest rate if you bought it for yourself.

Yes you will.

Raja said:

you could always get permission to let off the mortgage company afterward.

Do be careful, not all lenders will do this.

Raja said:

last i looked the deposit levels and interest rates were rather high on a b2l.

BTL goes to 80% LTV at mom. You won't much like the rate or the fees.

Raja said:

also make sure the potential rental income per month comes upto (i think) 125% of the interest only mortgage payment.

Not a bad guide, but not currently set in stone.
Your biggest problem will be securing the mortgage before you get to the nitty gritty.