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How many properties for £...

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  • How many properties for £...

    I'm 25 I'm looking to buy my first BTL and I have an existing mortgage of £65000. I want to buy a property valued £85,000 and I have funds of £50,000 for this but want to use this to buy more than one property. I earn £22,000. How many properties can I buy?
    Thanks
    Dyer

  • #2
    Well, a few possibilities here.

    Assuming you buy properties all aourd the same price, you will need a 25% deposit per property, ie £21,250 on £85k purchase price. But you will also need cash for associated fees, eg valuation, solicitors etc

    So I would say a maximum of 2. However, there may be a possibility of raising extra funds through your main home to allow you to buy more.

    Be aware that the rent will need to cover the interest only mortgage payments by x%, X varying between lenders, but at least 125% is preferable.

    Speak to an independent mortgage broker if you want specific advice, as they without looking at your whole situation the above is just a rough guide.
    Independent Mortgage Advisor, expert in residential, buy to let, holiday let, and refinance mortgages

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