200K mortgage

andymac746

she could buy out of london and commute to work?

silvercar

I know a few people who bought 2 bedroom flats in (outer) London in the early eighties and rented out their spare bedroom. It worked out much cheaper than paying the mortgage on a 1 bedroom flat and all the gain was their'swhen they sold.

It was also very easy to find someone to rent a room.

Daniel_B

andymac746 wrote:

she could buy out of london and commute to work?

I agree, it's the way to go - north of London is your best bet, some lovely places such as Harpenden, Hitchin, and others not so nice, such as Stevenage or Luton (where I live!) where you can get real houses, not flats, and commute into town in around 30/40 minutes, depending on the line you use.

Travel costs go up of course, but it's swings and roundabouts.

You pays your money.....

Dan

Joannaclaire

What about looking somewhere like Croydon - 20 mins into London with really good trains, loads of shops, but far cheaper for a 2 bed flat (120,000-150,000). Or even a little house for around 160,000-180,000?And it's in Zone 5, so not as expensive as moving further out.

[Deleted User]

Thank you Daniel and Joanne for your suggestions. My daughtter works as a sales rep and she has to drive to London everyday as her patch is central London and the whole of M25 area. Commuting is not an option, and the time it would take her to travel would mean leaving home at crack of dawn and not getting home until very late evening. We have considered that, but I'm afraid not really practical solution.

redballoon_2

i would suggest the same as others and buy out of london and commute in. much better than getting a big mortagage that she woudn't be able to afford.

Even if she could just about afford the repayments it's not going to leave much for living on.

[Deleted User]

redballoon wrote:

i would suggest the same as others and buy out of london and commute in. much better than getting a big mortagage that she woudn't be able to afford.

Even if she could just about afford the repayments it's not going to leave much for living on.

You're quite right - she would not be able to afford repayments on such a high mortgage, let alone leaving her anyting to live on. But then she is currently paying £800.00 pm which is a lot of dead money. An this is why she is considering subletting a bedroom to subsudise her outgoings. Which brings me back o my inital question. I am not sure if building societies would allow her to sublet. If not, than I'm afraid the whole idea is a non-starter.

redballoon_2

it's a difficult one.

perhaps look at first time buyer mortgages that offer interest repayment for the first few years. ok, it may mean paying more interest but once she was on the ladder she could let a room out and pay more off the mortgage when she could.

or what about looking for a buy to let mortgage?

I really do feel for first time buyers.

Patmoore

redballoon wrote:

it's a difficult one.

perhaps look at first time buyer mortgages that offer interest repayment for the first few years. ok, it may mean paying more interest but once she was on the ladder she could let a room out and pay more off the mortgage when she could.

This is what I think I'll end up doing. Having seen 4 advisors recently, all 4 mentioned going interest only for the first 2 years, so it's affordable for me. Until I earnt more money.

The thing I don't get is if you are not allowed to sub-let a room on a residential mortgage why do so many people do it. How do you get round it regarding insurance and such things?? I'm incredibly naive on these matters, so am looking to be educated

Is it a case of you just don't tell anyone?

silvercar

The thing I don't get is if you are not allowed to sub-let a room on a residential mortgage why do so many people do it. How do you get round it regarding insurance and such things?? I'm incredibly naive on these matters, so am looking to be educated

Is it a case of you just don't tell anyone?

Probably you keep quiet and get your tenant to pay your credit card bill, pay cash etc.

It's a bit of a catch 22 situation, if you don't say you will have rental income how do you get the mortgage company to give you a large mortgage?