Buy –to- let Mortgages ?

[Bingo-Player]

Anyone had any experiences with these ? What are the risks ?

2 of my friends have just gone for one and seem to think there will be no issues

I’m concerned as for a start this the second mortgage they’re going for .....

They both have loans , bills a mortgage and now another mortgage that is potentially going to need paying if they can’t get tenants in straight away

(which for the house they are buying in its current location i don’t think it will be that easy )

From my POV it sounds an incredibly risky move and i am surprised the bank has agreed, especially when we are all in our very early 20’s and not exactly earning mega money

Am i missing something here ?

What happens if the property can’t actually get tenants ?

 

[Bingo-Player]

yea this is what i thought

2 mortgages is costing them something like 600 bucks a month each

thats before you even get started on any bills / taxes / credit cards & loans they have

they earn like 1200 a month

i have warned them that unless they get long term tenants into that second property almost immediately they are running the risk of bankrupting themselves

my words are falling on deaf ears.......as you can imagine

 

[speed dawg]

2 of my friends have just gone for one and seem to think there will be no issues

I’m concerned as for a start this the second mortgage they’re going for .....

They both have loans , bills a mortgage and now another mortgage that is potentially going to need paying if they can’t get tenants in straight away

(which for the house they are buying in its current location i don’t think it will be that easy )

This is the sort of stupidity that will lead to another economic crisis. Banks relax and start handing out funny money. It's just like tornadoes.....weather man cries wolf 49 times in a row and on number 50.....devastation that no one saw coming.

 

[sanamgulzar]

I’m concerned as for a start this the second mortgage they’re going for .....