Second mortgage for flat?
Discussion
Hi guys,
My mother in law currently rents a flat privately, after some thinking over the weekend I thought it could be better for Mrs D1 and I to buy a cheap flat and rent it to her.
Makes long term financial sense as the MOL would effectively be paying the mortgage instead of some private landlord, would have a flat for life and at the end of it all a pension pot for me.
Seeing as we wont be commercially letting it out, just letting the MOL live there is this still technically a BTL mortgage or can I get a standard one? Rates for private ones are less and the LTV %s more favourable.
What are the pitfalls? Am I missing something?
Cant be that simple can it?
My mother in law currently rents a flat privately, after some thinking over the weekend I thought it could be better for Mrs D1 and I to buy a cheap flat and rent it to her.
Makes long term financial sense as the MOL would effectively be paying the mortgage instead of some private landlord, would have a flat for life and at the end of it all a pension pot for me.
Seeing as we wont be commercially letting it out, just letting the MOL live there is this still technically a BTL mortgage or can I get a standard one? Rates for private ones are less and the LTV %s more favourable.
What are the pitfalls? Am I missing something?
Cant be that simple can it?
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