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First time buyer problem - no leverage


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Hello everyone,

 

I'm looking for ideas on how best to start investing.

 

I have a decent amount to invest in BTL properties, but this will be the first house I've purchased and therefore I won't be eligible for a BTL mortgage. This means I can't leverage the loan money and get the most bang for my buck.

 

Do you have any good strategies on what I should do?

 

One idea I have is to buy a cheap BTL property with cash, and maybe then I will be looked upon more favourably by mortgage companies and I'll be able to secure a BTL mortgage with the rest of the cash I have as a deposit.

 

I could then sell the cheap property I bought originally and use the cash as a deposit on another property.

 

I'm just thinking aloud, so any ideas from other members would be great!

Thanks.

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Hi Anthony,

 

I have purchased two buy to lets and I'm still living with my parents. Although it's not a huge help not having a residential mortgage it can certainly be worked around.

 

I think the best bet for you would be to talk to a good broker, they'll show you which lenders will lend, and which won't.

 

FYI my two properties are with NatWest but I know for a fact there's a handful of lenders that'll do B2L for FTB. (Lots of acronyms in there < )

 

Cheers,

 

James

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Thanks for your reply James.

 

This certainly gives me a bit more confidence. I'm out of the country at the moment, but I'm going to talk to a mortgage broker as soon as I get back.

 

What kind of things do these lenders look for? Are they more focused on how much rent the property can make or do they place more weight on salary?

 

I'm just trying to prepare as much as I can in advance.

 

Thanks again.

 

Anthony.

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