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WhiskyJoe
Posts: 6 Forumite
A bit of background first:
I am a mature student, studying medicine.
I own (outright) my property worth 165k (which I would be able to rent for about £700 per month), but I want to move to a bigger property.
I have not had a mortgage before.
As a student, would I be able to get a mortgage, given that my income could only be £700 per month?
Can I use my existing property as a desposit/collateral? I don't really understand how it would work...
If I could get a mortgage, how much would be possible?
Thanks in advance for any help!
I am a mature student, studying medicine.
I own (outright) my property worth 165k (which I would be able to rent for about £700 per month), but I want to move to a bigger property.
I have not had a mortgage before.
As a student, would I be able to get a mortgage, given that my income could only be £700 per month?
Can I use my existing property as a desposit/collateral? I don't really understand how it would work...
If I could get a mortgage, how much would be possible?
Thanks in advance for any help!
0
Comments
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It doesn’t sound viable, although a mortgage broker would be able to advise. Do you have any cash savings? You would be paying the additional rate of SDLT if you are not disposing of your current house, which is 10k on a 250k property.0
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When you say your income would be £700 per month - is that from renting your current property? Do you have a deposit, money for fees? I'd say no lender would lend to you - too high a risk.
What is your income per month if you sold your current propery to use as a deposit?0 -
Thanks for your advice. From what I'd read on Google etc. I didn't think it was viable, but I couldn't find examples of people in my exact situation. I was just unsure whether when people referred to equity being used as a deposit that it may be applicable in my situation.
I don't have any cash savings any more.
Yes, the £700 a month income would be the rent that I could get from this property. I presumed that I wouldn't be able to count my university bursary and maintenance loan as an income (prior to me qualifying as a doctor). I am a correct about that?
Unfortunately I wouldn't be prepared to sell my current property. It has too much sentimental value, so the most I'd be willing to do is to rent it out.0 -
... what happens when tenant doesn’t pay rent....Thanks for your advice. From what I'd read on Google etc. I didn't think it was viable, but I couldn't find examples of people in my exact situation. I was just unsure whether when people referred to equity being used as a deposit that it may be applicable in my situation.
I don't have any cash savings any more.
Yes, a month would be the rent that I could get from this property. I presumed that I wouldn't be able to count my university bursary and maintenance loan as an income (prior to me qualifying as a doctor). I am a correct about that?
Unfortunately I wouldn't be prepared to sell my current property. It has too much sentimental value, so the most I'd be willing to do is to rent it out.0 -
Thanks for your advice. From what I'd read on Google etc. I didn't think it was viable, but I couldn't find examples of people in my exact situation. I was just unsure whether when people referred to equity being used as a deposit that it may be applicable in my situation.
I don't have any cash savings any more.
Yes, the £700 a month income would be the rent that I could get from this property. I presumed that I wouldn't be able to count my university bursary and maintenance loan as an income (prior to me qualifying as a doctor). I am a correct about that?
Unfortunately I wouldn't be prepared to sell my current property. It has too much sentimental value, so the most I'd be willing to do is to rent it out.
No, it would therefore not be possible.
You would need to sell your house to use the £165k as a deposit, then get a mortgage with your income. As you have no income, then this isn't going to work.
You are better off living in the property and renting the rooms out to save some more money.Should've = Should HAVE (not 'of')
Would've = Would HAVE (not 'of')
No, I am not perfect, but yes I do judge people on their use of basic English language. If you didn't know the above, then learn it! (If English is your second language, then you are forgiven!)0 -
No, it would therefore not be possible.
You would need to sell your house to use the £165k as a deposit, then get a mortgage with your income. As you have no income, then this isn't going to work.
You are better off living in the property and renting the rooms out to save some more money.
I don't have any spare rooms unfortunately. I'm in a 1 bed flat.
Thanks for the clarity though. Looks like I'll have to wait until I qualify.0 -
No, it would therefore not be possible.
You would need to sell your house to use the £165k as a deposit, then get a mortgage with your income. As you have no income, then this isn't going to work.
You are better off living in the property and renting the rooms out to save some more money.
What if I got a joint mortgage with my partner instead? Would that make it possible?
The reason I was thinking of keeping it separately originally was because she was thinking of buying a separate home as an investment. But ultimately our main goal is to have a house together.0 -
You still don't have a deposit, money for fees or stamp duty.
Have you looked into becoming a landlord and all the laws you have to follow - you wouldn't make £700/month even if that was the rent as you had a paying tenant as you have to have insurance, money for repairs etc etc. Not to forget tax.
Plus if you won't sell your flat for sentimental reasons - are you ready to see it trashed by bad tenants, this does happen.0 -
CommitedToChange wrote: »You still don't have a deposit, money for fees or stamp duty.
Have you looked into becoming a landlord and all the laws you have to follow - you wouldn't make £700/month even if that was the rent as you had a paying tenant as you have to have insurance, money for repairs etc etc. Not to forget tax.
Plus if you won't sell your flat for sentimental reasons - are you ready to see it trashed by bad tenants, this does happen.
In the joint mortgage scenario, my partner has the capital to cover all the deposit costs etc.
You're right, I would need to deduct the costs of insurance etc from the gross income of the rent. Also very good point about potential bad tenants. Although given it's close proximity to the hospital I would be only considering young doctors - not that this necessarily removes all risk.0
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