some lenders will accept 10% for a BTL deposit, its just a case of seeing what deals are about. Most will want the rent to be around 125% of the mortgage cost though.

Id personally get onto a mortgage advisor and they'll give you the best advice, will of seen a similar situation 1000 times!

Ps i know the house is good structually as my folks have lived next door for 28 years

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Originally posted by Colin
Is it only me thats wondering why the guy that owns it has let it get into such a state & hasnt developed it & sold/rented it out himself, if you say he has a few houses you'd think he'd have half a brain as to how to make some money from them :boggle:

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Is it only me thats wondering why the guy that owns it has let it get into such a state & hasnt developed it & sold/rented it out himself, if you say he has a few houses you'd think he'd have half a brain as to how to make some money from them :boggle:

You could maybe buy it under normal terms, use your money to do it up then remortgage to a btl one once the works done & use some of the increased survey value as a deposit. I think you can do that.

For example, get a 1 year fixed rate deal - £75k mortgage, spend your £20k doing it up then in a year get it surveyed for £110k or whatever & use the equity in it to change to a btl, then get some punters moved in...............I 'think' you can do that!!

so 25% of the value when you buy it?

I have like 20k available for a deposit thats fine, but would need £20k to do it up also

Also if you get a normal mortgage & rent it out I think you could hit a problem with insurance etc, also if the mortgage company found out they might not be happy. Everythings got to be text book when it comes to owning a house im afraid.

iirc for most btl mortgages the lender asks for a 25% deposit............they might not all be like this however, im sure there will be exceptions to the norm.

the house next to my parent's house has been empty for about 7 years, the guy who owns it has a few houses and comes once every few months to check its OK - it is a total mess, needs windows, roof, floor, kitchen, heating, doors, garden and bathroom as it has none!

I have been trying to buy it for the past 3 years to rent out. I heard that someone had bought it for £95k so I doug his number out and rang him yesterday.....he did not confirm it (did not ask outright, just said I was still interested in buying it) and he came round today and said he had it valued for 80-85k as it is (needs about 20k spent on it) but he said I could have it for £75k for a quick sale.

I have already seen a mortgage advisor about getting my own place and can get about £120k. I would have £20k in the bank from my own savings, but this place I would buy to rent only.

I am getting it valued myself in the next few weeks, and if it does come back at say £75k I will need 15% (or so) to lay down as a deposit and £20k or so to do it up

Do I have to get a buy-to-let mortgage or not? Could I get a normal mortgage and let it myself (with proper contracts etc)?

The thing is there are a lot of gypsies round here who are buying houses for silly money as they can afford to and I don't want them to buy it (they would pay £95-£100k easy for it)

need to ring HSBC up tomorrow to book some time with them

Thanks