Buy-to-Let

My nephew wanted to get a BTL flat but he was told that lenders wouldn't entertain him because he, like you, is living with his parents even though he's earning about 80k a year.

So. presuambly there are lenders out there who he could go to?

Well done with your achievement so far by the way - and I like the way you're looking for options and being shrewd enough to get out there and seek advice from people with experience.

Hi Anotherjohn,

I bought my first flat at 19, although I was limited in terms of lending, it was possible. Perhaps your nephew should speak to a broker to see what his choices are? As I had a lack of experience then, the rate wasn't ideal, believe it was 3.3% but once I got my foot on the ladder things became a lot easier and the current rate is 1.99%.

80k a year is a good wage, I'm sure with the right broker he will be able to sort something out.

Thanks for your kind words also!

Best of luck.

Cheers,

James

Take you accountants advice slow down and take stock. You con't need property prices to drop much before you can say bye bye to your property portfolio . 20% drop which is a real possibility puts you under pressure, and its coming.

Douglas, can I have the lottery numbers for Saturday, please?

Evening all,

Thanks for the advice and opinions on this post.

I thought I would let you know what I've ended up doing short term - I've decided to lock into a 5 year fixed rate at 2.09%, not pulling any equity out. The lender is a provider who is open to offering additional finance after 6 months, this gives me the options I need should I want to use that money at some point in the future.

In the meantime, I'm going to continue to keep an eye on the market and grow my cash pot. There's no harm in slowing down, reevaluating things and then moving on. As a lot of you have stated, time is on my side, so I'm just going to see what happens over the next 6 months.

Thanks again,

James

Thank you for the up-date James and well done.  I am a great believer that, if you determine your strategy, commit to it, and take sustained and intelligent action on a daily basis, you will achieve all your dreams.  Once you commit to something, it sends serendipity into action on your behalf and things come along to assist you.  That is what I have always found anyway.

Good luck and I hope you will stay on board with PT and give further up-dates as I will be awaiting to hear of your future successes.

Excellent decision I think James

I think your quiet highly leveraged

and I am not sure it’s a wise thing today

I have been in your shoes

and my strategy was to stop remoageing to raise deposit for more BTL

my stratergy was to save deposit from cashflow

I know it takes longer but what is the rush

we are going to see low capital growth for years to come so levarge is not good

if you save a good deposit and buy new properties they will be cashflow positive and you will be stronger landlord for it

Hi Dislexic,

In your opinion what is the ideal LTV? Of course, 0 debt is great but 50-65% LTV seems to be the best use of the bank's money whilst at the same time not putting an investor in unnecessary risk.

I think I will grow my portfolio organically. Living with my parents enables me to save a lot more money than I would otherwise, so it shouldn't take me too long to save up for another deposit.

Thanks,

James

My own goal is 60% or less

saveing a good deposit makes sense

too