BTL for newbies with a bit of Cash Saved

[siyo88]

I am a newbie to property investment, I don't currently own my own home (Living with parents) and want to invest in property. I currently have 40K in my savings. As far as i'm aware, I'm unlikely to be able to get a BTL mortgage as you I will need to get a residential mortgage first? I want to know whether I should get a residential mortgage on my first property then wait out 2 years before I remortgage to a BTL mortgage?

Is there another way around this?

My aim is to build up cash flow and my portfolio over a few years through remortgaging and releasing equity to purchase additional investment properties.

 

Many thanks - I hope you guy can help me make my first steps into the investment world :-)

[Dino V]

You don't need your own property, but mortgage choices will be more limited. Depends what your goals are and the area you want to live in and invest in.

Your own home is free from any capital gains, so you could always look for a home that you could add value to (refurb etc) which would be an easy way to increase your equity, using a 5-10% deposit and the rest of your savings for works. You couldn't remortgage until the deal was up, so choose a mortgage carefully.

As I say, location is important, so around Manchester (where I'm based) you can easily buy a decent 2 bed terrace for c£100k, so you could afford your own deposit and a BTL deposit with your savings and probably have £5k left for some works. If you're in London, you're probably looking at a cardboard box