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  1. #1

    Interest free mortgage help

    OK so I am completely naive when it comes to mortgages and houses etc. So was hoping someone here could help me with some advise...
    OK, so my idea was to possibly get an interest free mortgage on a 1 bed flat of around 90k, putting down 20k deposit, would I possibly be able to rent this out straight away so that the rent being paid will cover the mortgage and some. Also in 5 years down the line or whatever I'd be able to sell it, depending on where the market is at the time I could make a few grand maybe...
    As I said I have no idea what I'm talking about so in theory it sounds really easy and plausible to do however I know I'm gunna be missing something important that won't allow me to do this lol so was hoping someone here could shed some light on this...
    Thanks in advance

  2. #2
    Let me know where you are getting an interest free mortgage from, I’ll have two!

  3. #3
    Start on the House Buying, Renting and Selling board then. Learn what running a business involves. As well as the tax implications.

  4. #4
    I think it’s gonna be a lot harder than you think it is!
    I’m not a landlord myself, and have no interest is being one for that matter, but I’ve picked up a few points from these boards on the matter, so as above - head over to the buy, selling and renting board, lots to learn there.

    Some points to consider in a nutshell:
    - as you say you are naive about it all, I will assume you are a FTB? FTBs getting a BTL mortgage is rare. Usually lenders only offer BTL mortgage to existing home owners I believe.
    - even if you could get one, think you might be a bit short on deposit - advice on here usually is you need a 75% LTV ratio. Based on your figures, you’re at 22%.
    - you might make money when you come to sell in a few years time, but you’ll have CGT to pay.
    - do you know/ understand any of the rules and responsibilities of being a landlord?
    - rent - you’ll have to pay tax on this income. You’ll need to use some of the ‘profit’ for property maintenance so won’t all be profit.

  5. #5
    Interest free mortgage

    You really are naive! As others have said read the forums for a bit and realise that this is not an easy way to make money.


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