So how much can a financial adviser help with?
Discussion
I am thinking I need to understand the following:
Deposit taken out of over loan on current mortgage – creative financials
Mortgage on buy to let
Insurance for BTL, gas cert, estate agent fees and what less do I need
Taxation on the second home
What happens when base rate goes up, end of year or next year I think is predicted.
Calculate the yield of the BTL and actually with all costs as above considered is it viable?
Obviously they will want to make it look viable so they can get commission on the above
Is this too much to ask? If it is and I have to do the financial what have I missed?
Deposit taken out of over loan on current mortgage – creative financials
Mortgage on buy to let
Insurance for BTL, gas cert, estate agent fees and what less do I need
Taxation on the second home
What happens when base rate goes up, end of year or next year I think is predicted.
Calculate the yield of the BTL and actually with all costs as above considered is it viable?
Obviously they will want to make it look viable so they can get commission on the above
Is this too much to ask? If it is and I have to do the financial what have I missed?
classicc said:
Not fraud at all
Only creative in terms of using a loan for a deposit isn't that great an idea. But if the money stacks up and I get a second house out of it, I would be better off in the future.
So, getting a loan to pay the deposit, effectively a 100% mortgage? You do know know that banks check what money you've borrowed, affordability etc?Only creative in terms of using a loan for a deposit isn't that great an idea. But if the money stacks up and I get a second house out of it, I would be better off in the future.
Given what you've laid out, I would say save up rather than risking a lot on this.
Releasing equity to purchase a second property is hardly controversial.
I've helped my clients on all those points bar the gas safety certification(??) over the years, if you wanted it in writing I would charge you a fee but as others have said it wouldn't be difficult to get most of the answer from t'internet.
I've helped my clients on all those points bar the gas safety certification(??) over the years, if you wanted it in writing I would charge you a fee but as others have said it wouldn't be difficult to get most of the answer from t'internet.
Deposit taken out of over loan on current mortgage – creative financials
Dunno absolutely about this one. Whilst you could in theory take money out of the mortgage, if accepted by the bank, I *think* if you tell the BTL bank that you have taken a loan for the deposit of the mortgage, you won't get it.
Mortgage on buy to let
Lots of these about. The more the put down, the better the deal. All are generally more expensive than regular mortgages. Financial Advisor can probably help.
Insurance for BTL, gas cert, estate agent fees and what less do I need
An estate agent will be able to help you with this - call them and ask the questions or book an appointment. They will help you. Broadly though - you need buildings insurance, annual gas certificate and keep the property maintained. Optional is contents insurance and electricity inspections. Managed estate agents tend to charge 10-15% of the rental income. Tenant-find is a few hundred quid. Check with your locals.
Taxation on the second home
Any profit you make (rent minus mortgage interest payment minus house maintainence = profit) ,you will be taxed on so in some cases you are better having a higher mortgage to show no profit. This assumes you are in this for the long term equity growth and not monthly profits. I'd suggest not for the latter if you are mortgaging several properties to do so.
What happens when base rate goes up, end of year or next year I think is predicted.
The cost of your mortgage will go up, unless you are on a fixed rate.
Calculate the yield of the BTL and actually with all costs as above considered is it viable?
Google this one, there are some calculators about. As a guide, I've found that if you buy a regular 'nice house' your yeild isn't high enough for the hard-core BTL'ers out there. To get a good return, its either buying really cheap, or buying mega cheap and doing a house up then renting it out.
Dunno absolutely about this one. Whilst you could in theory take money out of the mortgage, if accepted by the bank, I *think* if you tell the BTL bank that you have taken a loan for the deposit of the mortgage, you won't get it.
Mortgage on buy to let
Lots of these about. The more the put down, the better the deal. All are generally more expensive than regular mortgages. Financial Advisor can probably help.
Insurance for BTL, gas cert, estate agent fees and what less do I need
An estate agent will be able to help you with this - call them and ask the questions or book an appointment. They will help you. Broadly though - you need buildings insurance, annual gas certificate and keep the property maintained. Optional is contents insurance and electricity inspections. Managed estate agents tend to charge 10-15% of the rental income. Tenant-find is a few hundred quid. Check with your locals.
Taxation on the second home
Any profit you make (rent minus mortgage interest payment minus house maintainence = profit) ,you will be taxed on so in some cases you are better having a higher mortgage to show no profit. This assumes you are in this for the long term equity growth and not monthly profits. I'd suggest not for the latter if you are mortgaging several properties to do so.
What happens when base rate goes up, end of year or next year I think is predicted.
The cost of your mortgage will go up, unless you are on a fixed rate.
Calculate the yield of the BTL and actually with all costs as above considered is it viable?
Google this one, there are some calculators about. As a guide, I've found that if you buy a regular 'nice house' your yeild isn't high enough for the hard-core BTL'ers out there. To get a good return, its either buying really cheap, or buying mega cheap and doing a house up then renting it out.
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