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maireb

Own property vs straight to BTL?

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Hi everyone, 

How important is it to own your own property in terms of securing a good BTL mortgage? I'm new to this and debating whether to first buy a flat to live in, then save up for a BTL property -- or if I should keep renting and use my deposit to get straight into a BTL? 

I don't mind renting, and want to do whatever makes the most sense £ wise. 

Thanks!

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Your mainstream lenders do not like "First Time Buyer, First Time Landlords". There are options but they will be limited.

Not only this but you could lose other benefits, such as Help-to-Buy Scheme, First Time Buyer SDLT Relief and so forth.

Renting to live in, plus renting to rent out does not make much sense. Unless your talking renting a bedsit and owning/renting out a full property.

Being a Landlord before being a Homeowner, can work for many. Specifically, those that dont plan on buying a house, living with parents or partner for example. Otherwise most would buy a home to live in, if they were still feeling entrepreneurial they could rent out the spare room.

It would be wise to talk to an FCA Regulated Mortgage Adviser for advice.


:wub: Get Mortgage Advice from my Team at Bespoke Finance on 08009202001 or email hello@bespokefinance.info 
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Please don't take my messages on Property Hub as Personal Financial Advice, just a rambling guy passing time on a Coffee Break.
 

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Please correct me if I'm wrong but...

You'd miss out on the stamp duty relief from buying your first home, although you could always buy a place for you to live in, then in a couple years, buy another to move to and rent yours out?

BTL mortgages are secured mostly on the property you buy. I think there was a podcast about this topic recently.

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I am exactly in the same situation as I do not own my property. I really want to use my deposit to get on with BTL and start saving again with my wife for residential deposit. The only question is will I struggle to get a residential mortgage if I already have BTL mortgage (if I decide to go ahead with BTL first). Any help would be appreciated 

 

thanks

Anand

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Although you would have less lenders willing to lend to you if you do not own a home there are still lenders out there you can go to. I bought my first BTL without owning a home so it is possible.

Best thing to do is speak to a good broker.

 

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My advice would be to buy your own home first - on the longest cheapest mortgage deal you can find - and save the difference between this & rent in order to get a deposit to fund a buy to let.

Buying a BTL first seems a bit like trying to run before you can walk - you will learn a lot from owning your own property which you can use in the futures.

Also...having a secure roof above your head is, to my mind, the most important thing to establish.

Good Luck :) 

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