First time buyer

ash21383

Hi

I need some guidance!

I have been looking at buy a flat over the last few months this weekend found one that I am very keen on. The problem I have is that, as you are all probably aware, to access mortgages at the moment at least a 10% deposit is needed. Putting this together would clear out all my savings. Consequently I have considered the idea of buying the place now and letting the property for 6 to 12 months, then moving in after this time. Giving me time to sort out my finances before I move in.

I am aware that I would need to approach my mortgage lender for a consent to lease as well as ensure I had the correct insurance in place (if I go down this road I would want to do everything above board), but does anyone have experience of doing this?

Just to clarify, I would still be living at home while doing this so would not have a second property in effect. I am considering going with Bristol and West for the mortgage. So far as the rental income is concerned, another similar property is current up to let and there are asking slightly more in rent than my repayments would be.

dimbo61

To get a Buy to Let mortgage you would need in the current market at least 25% deposit and the fees are now about 2/2.5% of the amount borrowed!
If you tell the lender you are buying the property to rent out they will want you to have a BTL mortgage.
You also need to be getting a rent which is at least 125% of the mortgage
so its a no go idea

beecher

If a 10% deposit would clear out your savings, how will you pay the fees for your purchase? And how will you pay for furnishings, maintenance, insurance, and cope with voids?

Why not just wait for 6 to 12 months and then buy somewhere? You'd be in a better position with a 15% or more deposit and prices may well have fallen further by then anyway. I don't get why anyone would be desperate to jump in now, particuarly if they aren't even moving in!

_Andy_

ash21383 wrote: »

Hi

I need some guidance!

I have been looking at buy a flat over the last few months this weekend found one that I am very keen on. The problem I have is that, as you are all probably aware, to access mortgages at the moment at least a 10% deposit is needed. Putting this together would clear out all my savings. Consequently I have considered the idea of buying the place now and letting the property for 6 to 12 months, then moving in after this time. Giving me time to sort out my finances before I move in.

I am aware that I would need to approach my mortgage lender for a consent to lease as well as ensure I had the correct insurance in place (if I go down this road I would want to do everything above board), but does anyone have experience of doing this?

Just to clarify, I would still be living at home while doing this so would not have a second property in effect. I am considering going with Bristol and West for the mortgage. So far as the rental income is concerned, another similar property is current up to let and there are asking slightly more in rent than my repayments would be.

You wouldn't be living there so it would be a Buy To Let.
You don't have sufficient deposit for a BTL so this isn't going to happen.

Robert_Sterling_3

A summary:

You can't afford to do what you would like to do just yet.
Cintinue to save up.

JayZed

Seriously, in six months' time your savings will probably give you a 12-15% deposit and cover all the other associated costs.