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whats the best mortgage to get?
Newbie06
Posts: 215 Forumite
Hi there,
I have a mate, he's planning to buy a small holding of 17 acres. It has a main dwelling and a small cottage which is currently rented out as a holiday let. He is not sure at the moment whether or not he will continue renting out the cottage, but does not want to be precluded from doing so as a condition of the mortgage.
The price of the small holding is 480,000.
He is 37 yrs old in full time employment, guarnateed income is 140,000.
As the farmhouse would be his main dwelling and the 17 acres used as a large garden, he would like a domestic mortgage with the lowest possible deposit and best rates avail.
Can anyone give any advice on this situation? (Thanks)
I have a mate, he's planning to buy a small holding of 17 acres. It has a main dwelling and a small cottage which is currently rented out as a holiday let. He is not sure at the moment whether or not he will continue renting out the cottage, but does not want to be precluded from doing so as a condition of the mortgage.
The price of the small holding is 480,000.
He is 37 yrs old in full time employment, guarnateed income is 140,000.
As the farmhouse would be his main dwelling and the 17 acres used as a large garden, he would like a domestic mortgage with the lowest possible deposit and best rates avail.
Can anyone give any advice on this situation? (Thanks)
0
Comments
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You would be looking at somewhere in the region of 5%-10% deposit, so £24k to £48k upfront.
3.5 times salary would give you an ability to borrow £490k, so this would hopefully be fine.
Probably all he would need to do if he didn't mention the letting of the cottage when getting the mortgage would be to tell the mortgage company of his intentions before he actually went to let it out.
Not sure if this helps much!Annual income twenty pounds, annual expenditure nineteen nineteen and six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery0 -
It depends on his own credit status, financial history, income and emplyment status (Ie where the income of 140k comes from etc).
It will also depend on whether the land has an agricultural tie attached to it as to whether he can get a standard residential mortgage on it.
He would need to find out more about the property and it's status (residential or agricultural), take the appropriate legal advice, and speak to a broker regarding the financial side.
Hope this helps
Andy0 -
Thanks for your helpful responses, another question, do you know of any lenders who would be good to use in this situation i.e. the garden being bigger than 2 acres, and there being a separate dwelling on the land?
There are no agricultural tie ins.
Thanks again,0 -
Will look into it for you and post reply later today.
Andy0 -
Hi there, my friend would like to speak/contact a mortgage broker directly regarding this, can anyone help?
Thanks0
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