NEW Partnership special offer: Set up a LTD Company & Business Bank Account for £12 stay.osome.com/Anxiousinvestor12 I hope this video helped friends. If theres any other costs you think i've missed (likely) or you need me to run through OR if you have any questions let me know below :)
Question for you if you could answer please what would you do in my situation I own my own home. Value £390k no mortgage but I would like to sell buy a cheaper home to move into with my family and invest into buy to let’s my income is 30-35k a year thanks
What percentage of your salary would you use for your mortgage when budgeting for it. I’m a first time buyer and there’s a difference between what I can borrow for a house and mortgage, and how much I can actually afford.
Great Q. As much as I may look risky on the surface with some decisions I make, I need to ensure I have enough cashflow to cover my mortgage & have a buffer of at least 50%. Of course this is usually for rental properties & I usually keep 10% aside for voids and maintenance. Always think what’s the worst that could happen, and then work backwards. A lot of people will sadly be in for shock this year.
A question really worth discussing with your mortgage advisor / broker. Everyone’s situations are different. Personally I fixed a while back, I have one up for renewal in November but I’m okay until 2025 now.
Criteria is different for residential / investment. But essentially, as you are coming up to a refinance, IF equity has increased (property value risen) you may have the option of increasing your loan. That increase in loan (lesser fees) would come back to you essentially, and as its a "loan" you wouldn't be paying tax on that amount. With an investment, lets say BTL, the rent to mortgage ratio must still be sufficient for the lender and for a residential you must show the lender that you can manage the new payments (which of course would increase, due to a higher loan).
Great question. So one thing to note is, its not just all about the rate or fee, which is often what most people see. A good broker should be able to assess your situation and find the best lender / product for you. (The more complex your case, the more i'd recommend a broker personally). Also a good broker will have better insight into certain lenders and IF theres something on your application (post basic information) they may be able to recognise pitfalls or advise against one lender over another. Ive seen many people, even once myself in my early days, not get the deal advertised on comparison websites because of things they dont share outright. Ive also picked up better rates, by going to a broker who had good relationships with a lender and subsequently managed to negotiate a small % of some of the fees.
It depends on the opportunity cost. Renting is better if you have a good return on your deposit somewhere else. I'm saying that even though I can't stand the idea of renting.
