Q We are a professional couple in our late 20s/early 30s on a combined annual income of £90,000. We are currently renting in London but want to move to Suffolk. We have a deposit of £30,000 and are looking at places for less than £250,000.
We are keen to buy before the end of March to take advantage of the stamp duty waiver for first-time buyers. The trouble is, we won't be able to leave London for a year at least, so we would have to rent out the house in Suffolk.
Will we need a buy-to-let mortgage even though this will be the only home we own? We certainly can't afford a deposit of 25% and the higher mortgage repayments are also worrying. IM
A Whether you need one or not, a buy-to-let mortgage is not an option. With a deposit of £30,000 and a property valued at £250,000 you would need a mortgage of 88% of the value of the property. The most buy-to-let lenders will lend is 80% of a property's value, and that size of loan is on offer from only four buy-to-let lenders. Continued via 'The Guardian.'
