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  • FIRST POST
    • gll5dm
    • By gll5dm 29th Jan 18, 10:04 PM
    • 88Posts
    • 44Thanks
    gll5dm
    First time buyer unsure of diff. mortgage benefits
    • #1
    • 29th Jan 18, 10:04 PM
    First time buyer unsure of diff. mortgage benefits 29th Jan 18 at 10:04 PM
    Hi everybody,

    I've saved 30.000 pounds and would like to invest the money in property.

    I'll be leaving the UK at the end of the year so will look to get a regular mortgage as I'll be living in the property for a good six or seven months before leaving, and from what I've read changing circumstances in this way doesn't require a new mortgage agreement (hence why buying it now with a regular mortgage but fully intending to end up renting it).

    Now I'm looking for a little advice as I've been hearing all sorts about help to buy vs regular mortgage. Bearing in mind this will ultimately turn out to be a long-term investment and I have enough money to put down a substantial deposit now (15% - the property itself costs 119.000 pounds), can anybody please suggest what type mortgage I should be aiming for?

    I understand help to buy gets you a bigger deposit to put down, but the downside I hear is that you end up paying more back if, as expected, the price of the property increases. So I am thinking just a regular mortgage is more suitable seeing as I can afford a good deposit.

    If I was prepared to put 10% down on the property instead I could directly purchase two and really kick off my property-owning portfolio! My 30.000 pounds would easily cover 10% deposit for two 119.000 pounds homes.

    If you were in my shoes, what would you plump for, any why?

    Thank you
Page 2
    • gll5dm
    • By gll5dm 31st Jan 18, 12:44 PM
    • 88 Posts
    • 44 Thanks
    gll5dm
    No I didn't mean you were boasting about anything. I meant that when people get caught and convicted of something they are very unlikely to talk about that to others. So for all we know a large number of people may get caught doing what you are planning to do. Or not. We don't know.

    But your posts make it look like you are planning to get a residential mortgage, knowing that you will rent it out. In fact in your very first post you say...

    "(hence why buying it now with a regular mortgage but fully intending to end up renting it)."

    That's nothing to do with getting a mortgage in good faith, that's just mortgage fraud. And it's mortgage fraud regardless of how many thousands of other people do it, isn't it?

    "That doesn't make somebody a troll, or a fraudster, or a criminal"...


    It may well make you 2 out of those 3 things...

    fc
    Originally posted by fewcloudy
    You call it mortgage fraud, I call it taking a residential mortgage out to use for myself before renting the house out when I hopefully find a job abroad in the future and rent the house out. Might as well lock me up and throw away the key now.

    The lender couldn't care less as they'll be getting their money every month. Indeed should I buy a house tomorrow, I'll be living in it myself for at least 10 months, potentially a lot longer.

    This has gone massively offtrack due to people on their high horses, so let's leave it at that.
    • gll5dm
    • By gll5dm 31st Jan 18, 12:45 PM
    • 88 Posts
    • 44 Thanks
    gll5dm
    Not a troll but certainly the latter two whether you like it or not. While I doubt anybody on here is perfect I can't see you getting anyone to encourage you to commit mortgage fraud (which oddly enough is a crime).
    Originally posted by bigisi
    I'll take that.
    • marliepanda
    • By marliepanda 31st Jan 18, 2:09 PM
    • 5,219 Posts
    • 10,699 Thanks
    marliepanda
    Yes, you're absolutely right. I have no intention of living in the UK for the rest of my life. I don't know when I will leave, but I would like it to be the end of the year, completely unsure on a date though.

    So with that in mind, you're saying I have to get a buy to let mortgage, because I may be lucky enough to find a job abroad some time in the future?

    You're funny.
    Originally posted by gll5dm
    You're clearly not very bright, or you forgot that you very clearly said you would conveniently forget to inform your lender when you moved, because, in your eyes, so many other people must be doing it.

    Of course you don't need to get a BTL. You need to get a resi mortgage, and you NEED to let your mortgage company (aka the people who will own most of your house...) when you no longer live in it.
    • jkl123
    • By jkl123 10th Feb 18, 9:36 PM
    • 48 Posts
    • 32 Thanks
    jkl123
    http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/10418580/Lenders-crack-down-on-accidental-landlords.html

    Just thought i would drop this here. According to the article, if you are caught renting out a property without permission, they could demand full repayment of the whole mortgage which would then lead to defaults. Also your insurance is void, so if your tenants were to trash the place, it would be coming out of your pocket.

    To the op, if you want to do this legit, then maybe consider talking to a advisor as they would have dealt with people in similar situations and would know the best path for you. You could also looking into a variable mortgage so your are not tied in by a fixxed product. And then when you are moving away, look into remortgaging to a buy to let mortgage.
    Of course, if you go ahead with the plan you have now, then you run the risk of being caught, and potentially loosing the house if they demand repayment in full.
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