Here is my conundrum:
I understand that a mortgage broker or bank would lend me about 4 times my income (i.e. say 200K) towards property; that isn't very much. Now let's say that I wanted a buy-to-let property for 800K (all costs included in this figure).
Would the bank/broker lend me the money if I could show that the property 'pays for itself'?
E.g.:
Monthly Mortgage repayments @ 4% = 2700
Monthly Rental income - minus charges = 3000
Cash flow (positive!) = 300 p.m.
Would this be acceptable? Or would the cash flow have to be a lot more? Any expert advice? Similar experience by anyone?
I'm a first-time property investor with only savings to show and little more in terms of guarantees like other property.
Thanks
I understand that a mortgage broker or bank would lend me about 4 times my income (i.e. say 200K) towards property; that isn't very much. Now let's say that I wanted a buy-to-let property for 800K (all costs included in this figure).
Would the bank/broker lend me the money if I could show that the property 'pays for itself'?
E.g.:
Monthly Mortgage repayments @ 4% = 2700
Monthly Rental income - minus charges = 3000
Cash flow (positive!) = 300 p.m.
Would this be acceptable? Or would the cash flow have to be a lot more? Any expert advice? Similar experience by anyone?
I'm a first-time property investor with only savings to show and little more in terms of guarantees like other property.
Thanks