Buy smaller but sooner?

[Silverbirch2]

So we dont have a big deposit and were mid 40s so dont want a 30 year mortgage
Thinking of buying a 2 bed flat and renting it out whilst we stay put in our rented house until dc ready to move out. We could afford both.
Or should we wait and save ?
Feels like times running out for us to get mortgage due to age

You will need to get a Buy To Let mortgage. Lenders won't rent out a property if you have a normal residential mortgage. Buy To Let mortgages need bigger deposits. Your income from rent is subject to Income Tax. You will need a good contingency funds to pay for the maintenance and repairs of the flat as well as any upgrades the government insists upon.