Buy To Let

[toptop]

Im thinking about renting out my flat. Its in a great location and in very good order, and demand out ways supply for my area, however.... The amount I would be able to rent it for only just covers my mortgage payment. My question is... is it sensible to go ahead with the buy to let with the intention of increasing my deposit on the property in 12 months time (as i get paid with bonuses) thus allowing for the mortgage payment to go down?

[redcrx]

youd need to see whether anyone would offer a buy to let if the rental was no more than the mortgage payments.

When i looked into it i needed the rental to cover 125% of the mortgage.

Call a few lenders, or speak to a mortgage advisor.

[toptop]

If a mortgage is possible, do you think its worth my while?

[redcrx]

only you will know that, think about cost of repairs, insurance if let, its current value and what may happen in market, whether you have enough money to finance a new home (deposit etc). Youd need to pay solicitors fees for buy to let mortgage as well.

[toptop]

Thanks. I think it may be a small outlay to arrange it all at first but think it can work in the long term.

[hippyhoppy]

My neighbour did a buy to let. He had this house and decorated it etc. Got tennants in who knew all the loopholes and refused to pay the rent, smoked liked troopers and generally trashed the place. Never again, was the attitude once they got the house back! Sorry if this is a bit depressing, but it's better to get all views. People are not all going to treat your property the way you will...

[Twenty20]

You have to allow that there will be void periods - times when you wont have any rent coming in. Can you afford to pay the mortgage those months with no money coming in?

Have you got other funds for when you need to do repairs, maintenance etc.

Are you going to use an agent? They'll take a cut out of your income if you do. If you dont use an agent you'll have to know the law regarding tenancies.

Most BTL mortgages are around 80% of value. You need to be able to fund the remainder.

You wont be able to let out a property on a shoe string, it takes time and money.

[Postdog]

Rent will only just cover mortgage payments eh!. So no leeway for repairs, upkeep, ancillary expenses, etc etc. I wouldn't bother even trying.