Can someone talk me through buy-to-let pls?

[MrsWhirling]

We are desperately trying to move to a nicer area, with better secondary schools that our now 8yr old can attend. We saw a financial advisor who told us we can't because we can't borrow what we need. We are considering selling and buying a BTL, and living with my elderly parents for 2yrs or so. Any advise would be appreciated.

Do you currently own your house? Why not just rent that out?

I do own my house, but don't understand how I can rent my house out and buy another??

presumably the plan is that the BTL increases in value, meanwhile the OP lives rent-free and the rent on the BTL covers the mortgage.

might work - but it needs a lot more than that. I'm also not sure if you can get a BTL mortgage when you aren't a homeowner.

that's the first thing to find out. Then get realistic ideas on rent, add all the insurances, fees, maintenance, repairs, spare money for voids etc etc etc etc and see if it flies.

You said you would sell your house and use the money to buy to let - I wasn't sure why you couldn't save the costs of selling and just move out to your parents and rent your own house? But I feel I've missed something somewhere!

Me too Annandale! I guess if I rent my house and move to my parents I won't have a deposit for the BTL.

Ok I'm not understanding this. Initially you were talking about selling your house and buying one to BTL, so you'd still only own one house, while you were living at your parents? I still don't see why you would do that rather than just rent out your own house?

Or did you mean that you would remortgage your old house, in order to buy a BTL, but why would borrowing that much be a good thing in this situation?

Really sorry about this, I'm sure I will kick myself when I get it.

I'm not getting it either, annandale. OP, can you explain again?

Is the plan to get a btl in the nice area and rent.it until your own incomes increase to match the mortgage? Or to get an investment which you hope to sell in two years and buy house in nice area?

Yes toodarnhilly, buy a BTL in nice area and rent it until time for DD to go to secondary school in about 3yrs. I have the option of living with parents. I hadn't considered that I wouldn't have to sell my current home.

Ah, so that makes sense - you're basically going to move to a nice area, but get the house to pay for itself for a few years via BTL. All is now clear!

Right, I hope now I've stopped derailing the thread with dumb questions, someone who actually knows about BTL can come along... the only thing I know about it is that it's hard to actually make a profit on it, but if you're just looking to fund the costs of the house, it might well work.

Haha! You and me both Annandale! No not for profit, just so we can move to a nicer area. X

Do you have a good amount of equity in your home? You generally need 30-35% deposit for a BTL in order to access the best rates. If you live with your parents, will you be close enough to your desiredl location in order to deal with the day to day running of the property? Are either of you higher tax payers (or will the income from BTL take you into the 40% bracket)? Tax changes will make this financially punitive if you have a large BTL mortgage. Most important, can you live with your parentsh happily for three years : that's a loooong time.

I'm slightly confused, but if you own your current house then can't you move in with your parents for a while, sell your house and borrow whatever extra you need. If you did the BTL you would have no deposit for the new house. Or am I missing something?

No you're not Lozza, but I can't borrow what I need at the moment. So considering if BTL might work as I think that you may be able to borrow slightly more for BTL, or so I'm told.