Sell cars, sink that money into second house.

[Friggerpants]

Me and the missus have been talking, and have been thinking about selling both our cars, and sinking the cash into a 2nd property.

I believe after all is said and done, we could perhaps raise enough cash to stick £15k into a £100k house (We don't really live in an affluent area).

A £100K house around here yields £450PCM.......ish........


We already have our house, and aren't planning to move to a bigger house until my sharesave matures, however I think now's the right time to invest, given the housing market.

Would you consider selling your P+J to fund a house now? Is it a good idea?

[Sarnie]

It won't work because you won't get an 85% BTL mortgage.......

[TransverseTight]

Buy a Vito mini bus instead and do evening airport drop offs.. Youll be able to make £1000/wk tax free for life

[Friggerpants]

Sarnie said:

It won't work because you won't get an 85% BTL mortgage.......

Does it have to be a BTL mortgage? Friends before have rented houses out without changing mortgages before...

[Sarnie]

Friggerpants said:

Does it have to be a BTL mortgage? Friends before have rented houses out without changing mortgages before...

If your friends lived in a house and then moved out, rented it out, without changing the mortgage then they either had Consent To Let from the lender or contravened the T&C's of their mortgage.

What you are proposing needs to be a BTL mortgage as your intention is to rent it out. If you apply for a residential mortgage one of the main questions is "Will this be your primary residence?". If yes then they will take your existing mortgage into account for affordability which may mean that they deem you can't afford both mortagges. If no and you intend to rent it out, the application will be declined.