Property Mentor Investment Questions

The following question was recently submitted to our property experts by an individual looking for advice on how to deal with their property let. If you have got a question regarding your tenancy/property, contact us now via the link to the right.

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Q: How to Buy a Second Property

I would like to buy a second property - how would I go about it?

From Sarah Bent | Sussex | 31/05/2010 | Landlord

A: The first question you need to ask yourself is: is this second home for your own use or are you planning to lease it to tenants full or part-time as this can affect the type of mortgage and property insurance you can get?

If for instance, you plan to use this second home solely for yourself, you will be able to follow one of two options. For example, if you have got enough equity in your first property, you can release this money and use it to remortgage. However, if this is not the case, you will need to prove to your lender that you are able to afford the mortgage payments on this new property.

Another option available to you is buy to let. By leasing your second property to tenants they can cover the entire cost of your mortgage payments for you.

The incredible thing about buy to let is that your mortgage is based solely on your properties ability to produce 125% of its mortgage payments through rents. This means if you can prove to your lender that your property can do this, you can potentially invest in a bigger and better property.

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Image of Matthew Lauchlan Matthew Lauchlan, Property Mentor Director

I have been investing since 1984, and from the good of the 1980's to the lows of the 1990's, I thought I had seen it all, but the course proved otherwise. I first heard about it from a group of friends. They had been on the course the year before... Read more

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