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    • KP24
    • By KP24 16th Oct 16, 8:48 PM
    • 5Posts
    • 1Thanks
    KP24
    'Low' deposit but high monthly income - options
    • #1
    • 16th Oct 16, 8:48 PM
    'Low' deposit but high monthly income - options 16th Oct 16 at 8:48 PM
    Hi all,

    Apologies if this is in the wrong forum but I am looking for some help...

    We are looking to buy a new house next year and have been working out budget etc. we both have full time jobs and I own 2 buy to let properties. We currently live with parents.

    The property we are looking to buy to live in will cost around 500k. We have around 130k for a deposit meaning we would need a mortgage of 370k.

    We worked out our monthly finances and even with a mortgage of around £1200 a month and larger bills, with our joint income from employment and rental income, we are still likely to have around £800 spare a month.

    What are people's opinions about this? Should we wait and save for a bigger deposit or go with what we have and expect to pay for the huge mortgage for a very long time? Also, what % of savings do you think should go towards the deposit? With our 130k deposit, we will have around 30k left.

    Thanks in advance
Page 1
    • ACG
    • By ACG 16th Oct 16, 8:51 PM
    • 13,502 Posts
    • 6,648 Thanks
    ACG
    • #2
    • 16th Oct 16, 8:51 PM
    • #2
    • 16th Oct 16, 8:51 PM
    Do you know that stamp duty will be £30k? If you sell the BTLs the stamp duty will be £15k.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Thrugelmir
    • By Thrugelmir 16th Oct 16, 9:41 PM
    • 51,336 Posts
    • 43,185 Thanks
    Thrugelmir
    • #3
    • 16th Oct 16, 9:41 PM
    • #3
    • 16th Oct 16, 9:41 PM
    BTL's will impact affordability. Lenders will use what if scenarios, i.e. the properties rather than produce income are a drain on income. For the rental income to be considered the properties will need to be unencumbered i.e. mortgage free.
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
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