BUy to let??

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Has anybody done this? How diffiult is it to get a buy to let mortgage in addition to your normal mortgage. I would love to buy somewhere to let out as self catering accomodation. It is a good area for it and I would get good returns. Just wonder how much of a mortgage I can get and basicly how it works.

Think repayments are maxed at something like 80% rental income or loan to value but that may assume it is let 100% of the year on an Assured Shorthold Tenancy rather than as a short term holiday let. You are also liable for income tax on that, plus in your case potentially council tax, utilities etc to take into account.

We looked into buying a property with a flat in it, as well as the maisonette we would live in. We were told we could get a 95% mortgage on the bit we were going to live in, but only 85% on the bit we would rent out. That was with C&G I think.

I would consider tennancy instead of holiday lets too. I wondered if anyone would give 100% loan if the rent was going to be more then enough to cover it. I have just seen a large flat with tennants already in situ, that would provide enough rent. But I guess most lenders will want a hefty deposit and not loan 100% of the value.

You need to take on some of the risk with btl - usually 15% at least.
And the rent needs to be 125% of the mortgage usually too.

Thats what I thought, unfortunatly I can't make the 15%. Oh well nice idea shame about the reality.

Another 12 months they'll be giving houses away with cereal