UK mortgage for investment purposes

G

GreatDane

Registered User
Messages
681
Hi

Yes, I think a lender would entertain this proposal, assuming your borrowing in GBP£. Basically, your using the equity in the first property towards the acquisiton of the second.

I'd imagine the easiest way of going about this, is get the first property let, then approach a bank seeking funds & ideally, with the second property identified.

The level of rent generated on the first property, coupled with income generated / to be generated on the second property will be taken into account, along with your own personal income(s) ofcourse.

Assuming your living south of the border, try:

IIB Bank
Bank of Scotland
AIB
Bank of Ireland
Ulster Bank

AFAIK, all do this kind of lending & there are probably a few others too !

Cheers

G>
 
Hi

We already have a property in the north of ireland which we hope to rent out soon. Local agents tell us there is a good supply of tenants and that we should expect to get 350 - 400 rent per month tops.

The property is currently worth around 120000 sterling and is mortgage free.

We would like to buy another property on the back of Property 1 and our question is would we be able to get a mortgage for difference between the value of P1 and the price of Prop 2? We would expect this to be around 60000 sterling max.

Our plan would be to use the rent from P1 and P2 to pay the mortgage on P2. Realistically for the size of the mortgage on property 2, the rent from property 1 would probably pay it.

We would like to use as little of our personal finances in the deal as we possible can.

Any ideas? Would a lender entertain our proposal do you think?

Thanks
 
Thanks for the reply G.

When looking at my request, I think I may have an error in my assumption.

With our property worth 120000 sterling and the new property worth approx 180000, I suppose we would have to borrow the whole 180000 and use the 120000 property as collateral.

For one fantastic moment, I think I was under the illusion that we would only have to borrow the difference between the 120000 and the price of the new property. I don't suppose the lenders would allow us to do that??
 
You must log in or register to reply here.
Back
Top