Personally I don't think now is the best time to invest in BTL, to put it mildly
- mortgage rules are tougher nowadays in terms of being able to cover potential mortgage increases from rent
- extra stamp duty when you purchase
- loss of wear and tear allowance
- no longer taxed only on profits if you're a higher rate taxpayer

But if that's your intention, do your homework before you start, there are some good books out there. I think you are looking in the right area since prices in most areas of the north of England haven't increased much in the last 10 years. My gut feel is there are better growth prospects & yields there than in the home counties.

I'd suggest buying one at a time, and have your wife take on both mortgages in her name only. Possibly it might help if you were guarantor, but I would avoid joint mortgage because of the tax implications for you.

Generally speaking, I would try and avoid putting in more of your own family money than you need to to get a good mortgage rate. Assuming the mortgage rate is good, borrow as much as you can. Probably to get a good rate it will make sense to put in at least 20% deposit, but hopefully not much more than that.

Also I would suggest getting a mortgage with a 'whole of market' broker familiar with BTLs. I have used London and Country and been happy with them, there are other good brokers out there.

Also I would suggest a 5 year fix, not just because rates are low at the moment, also to avoid some of the extra affordability hurdles (which factor in what happens if rates increase), and to reduce remortgage hassles (eg. new rules mean I think you need to declare all BTL income if you remortgage one of them)

Also make sure you have some money set aside for emergencies - void periods, bad tenants etc.

You are planning a big financial step, so research thoroughly before you start. Good luck!

1. Presumably the friend has offered to manage the properties?
RE management at long distance can have major pitfalls.
Will the friend always be there on hand, fit and able to help, years down the track?
2. Concur with earlier poster, consider buy one and see how things go.
Remember RE illiquid, cannot be sold quickly with the click of a mouse.
Might cash need to be realised urgently at some stage for other Investment Classes or needs?
And housing is not exactly 'on sale' at present.
3. Noted. Remember CGT free.
4. Cannot immediately see a problem, but any capital gains tax liabilities (should you be so lucky), could not then be minimised/avoided by splitting the gain(s) between the two of you.
5. Presumably serious rapid capital gains are not expected from today's purchase price?
More a question of yield?
Has a yield figure been mentioned?

Good advice above in earlier posts.

Good Luck

Buy RGL, no maintenance costs, no stamp duty, it has potential for growth and pays 7%.

It takes two minutes to sell it not two months.

Have noticed a tendency for people (noted in our own family) to be scared of Stocks and Stock selection, as they see prices rise and fall. On the other hand quite content to load up on BTL where the prices are not published daily. And then many do like to see their investment in the flesh, so to speak; suspect they are an expert on housing, but not so much an expert with Stocks.

With REITs it is perhaps more difficult to get exposure specifically to the residential sector?
So for those comfortable with Stocks, but also sufficiently organised to advance plan and administer BTL, perhaps some of each might be considered?

Would add that current house prices and resultant yields do not attract this investor presently.
But then same could be said of other Asset Classes.