What mortgage!-can anyone help!

[dave222]

hi im looking at buying my first btl, but i was wondering if i was to buy a property to renovate then let out (to create equity), then do i need a specialist mortgae?, any help thanks

[Andy Start]

Strictly speaking, if you intend to let the property out you need a buy-to-let mortgage. There are many available requiring a 15% deposit with competitive fixed rates. If you intend to live at the property whilst you make improvements you could get a residential mortgage and then let it out when you leave, thus requiring a significantly smaller deposit. There are some mortgage lenders that will allow such an arrangement - most won't. Some might say what the lender doesn't know won't hurt them, but you breach mortgage contracts at your own risk.

Ultimately the answer to your question is no, you don't need a specialist mortgage to renovate and then let out a property - you just need a standard buy-to-let. I hope this helps.