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I have recently divorced and not been left with much from the spit of house sale etc, therefore I can not get back on the housing ladder where I am and have to rent, so with the little capital I have as a deposit, I am considering looking into a 'buy to let mortgage'in a different more cost effective town. That way although I will continue to live and rent where i am now, I can get my foot back on the ladder somewhere else which is cheaper.
My questions is simply is there any point?
For example if I put down £50k deposit for £200k buy to let home, and have a £150k mortgage and rent it out to someone. Although I am getting income from the renter, this will be used to paying off the monthly mortgage and expenses (£150k+ debt over 25 years).
Does common sense dictate that i will be using this to pay off the mortgage and therefore be exempt, or knowing what CMS are like do they count it as income, and therefore not only would I have a Buy to let mortgage to pay off every month with the rent money, but i would also have maintenance taken out, thus making it unviable and pointless.
I've looked everywhere and it seems to be confusing and no information. so if anyone can help thanks
My questions is simply is there any point?
For example if I put down £50k deposit for £200k buy to let home, and have a £150k mortgage and rent it out to someone. Although I am getting income from the renter, this will be used to paying off the monthly mortgage and expenses (£150k+ debt over 25 years).
Does common sense dictate that i will be using this to pay off the mortgage and therefore be exempt, or knowing what CMS are like do they count it as income, and therefore not only would I have a Buy to let mortgage to pay off every month with the rent money, but i would also have maintenance taken out, thus making it unviable and pointless.
I've looked everywhere and it seems to be confusing and no information. so if anyone can help thanks
