Buy to let question.

[Deanb7823]

If I were to buy a house cash from an auction and renovate to increase value and then mortgage that house on a BTL mortgage with 75% LTV can I do that if this is my only house I own? Now I know Lenders like you to be a homeowner for at least 6-12 months to take out a BTL and I’d have the works complete in 10-12 weeks. So basically I’d only be classed as owning a home for less than 6 months. I’m not far off starting my portfolio now I just need to make sure I’m on the right path if there’s any pointers out there that would be great!

 

[diyhelp]

I appreciate that you are buying a house with cash but how are you funding the renovations? Someone else may be able to advise on the buy to let mortgage qualification period as I would think this is set in stone but I am not sure.

 

[Deanb7823]

House purchase and renovations are all in cash from previous house flipping I’ve done.

 

[lookinginvest]

So, I guess in theory you should be ok to wait until after the 6 to 12 month period after which you can obtain a buy to let mortgage? Or would this put a strain on your funds? If you were to live in the house yourself then you would be saving rent in the short term.

 

[Deanb7823]

Yes that’s an option. I could flip the house and make a profit but I’m looking to generate cash flow each month now, I’m just trying to find out all the ins and outs but I feel like I can never have a good conversation with a mortagage broker either when I explain my position. I’d rather find out the facts myself or listen to someone who’s been there and brought the T shirt.

 

[nmb]

It is far more beneficial to go into a meeting armed with background information and specific knowledge. That way nobody can pull the wool over your eyes!

 

[realdeals]

When it is the meeting with your financial adviser? I would assume they will mention the tax benefits of living in the property (assuming this is your only property) until you are eligible for a buy to let mortgage?