Buying a second investment property

[SpudMur]

Hi, I'm about to by my first investment property and I was just wondering if I go to buy another one is there any extra stipulations that might hinder me in getting another mortgage. I take it as long as the first one is not losing money then my financial position hasn't changed since they okay'd my first mortgage.

Thanks

 

[RainyDay]

Hi, I'm about to by my first investment property and I was just wondering if I go to buy another one is there any extra stipulations that might hinder me in getting another mortgage. I take it as long as the first one is not losing money then my financial position hasn't changed since they okay'd my first mortgage.

Thanks

In general, it's all about ability to repay. You will have to show that you have income to meet the repayments.

On a more general point, keep in mind that a diversified investment portfolio (i.e. mix of property and other investments) will be more resilient to dramatic changes than a portfolio solely containing property investments.

 

[Purple]

Also keep in mind that Labour might be in the next government and they have been making noises about putting additional taxes on second homes and investment properties.