Nicholas Wallwork
Editor-in-Chief
Staff member
Premium Member
I'd strongly advice before purchasing your first deal get your mortgage in place in principal and ensure you take good tax advice. Some lenders might not like Ltd Co lending as you are starting out so be extra careful and speak to all the relevant advisors first...Hi Nicholas,
Many thanks for this - we would be looking to purchased our properties as an SPV/Ltd as this seems to be the general consensus now. Evidently we would also get tax advise to confirm this is the best method for our situation and future portfolio growth.
HMOs are definitely one strategy we have looked at, specifically student property. However, our initial consultation with a mortgage broker we found online was that we would not be able to get a mortgage on this if we had not already had experience as a landlord. Is this correct? As such, we would need to get a single let property to begin with and show lenders that we are capable landlords? It appears that have a guarantor may be essential in the beginning and we believe both our parents (who each own properties) would be willing to do this for us which could increase our options/
We were under the impression that for BTL properties lenders look at the rental income as a proportion of the interest rates to decided whether to lend?
Many thanks for your response.
Rob and Alex
I wouldn't like to answer too many of your mortgage related questions as I deal mainly in commercial mortgages now, however Darren @The Mortgage Broker should be able to help and walk you through the minefield of mortgages and what is and isn't allowed at the current time. It's changing so quickly as well, you need a good advisor to keep up!
Guarantors will definitely help so that's great the "bank of mum and dad" can help... we all need a leg up sometimes and it's the best place to go for your first use of OPM (other people's money) which is key to growing your portfolio past a handful of deals when you get to that stage...