Getting a Mortgage

Cornel

Hi I'm all new to this, I would like some info on getting a mortgage; I want to buy a 4 bed semi-detached, for +- £280K, my wife and i only qualify for £160K, but if i rent out 2 rooms to share (so 4 people) @£80 per person per week = £320*4 =1280 and the difference will be covered by us, so say the mortgage is £1800 We only need to pay in £520. Plus i want to try and get a 100% mortgage and not a buy to let. How do i approach the bank, does any one know a mortgage manager that i can contact that will understand this investment idea?

Regards,
Cornel

robwend

if the bank will only lend you 160k then thats all yourl get hun,they cant loan you extra for somthing they cant see like room renters, thats like showing them a over time slip before yourve done it and saying"thats a rough guide>. maybe im wrong,:cheesy:

Doozergirl

robwend wrote:

if the bank will only lend you 160k then thats all yourl get hun,they cant loan you extra for somthing they cant see like room renters, thats like showing them a over time slip before yourve done it and saying"thats a rough guide>. maybe im wrong,:cheesy:

Think you might be - generally, someone would take out a BTL mortgage before they actually owned the property and so they would be unable to let it until they'd aready received the funds. They have to trust that you will let the property.

If you look for a whole of market advisor they will be able to advise you best. You can find one using http://www.unbiased.co.uk/personal-finance/mortgages/ Otherwise, there's one hanging around here that will probably come and put us all straight in a sec

AndrewSmith

Hi,

You wont qualify for Buy to let for 3 reasons:

1) For Buy To Let you or a member of your family cannot occupy the property
2) You need at least 15% deposit
3) You cannot let individual rooms on a standard Buy To Let, they usually like to see an assured short hold single tennancy (One tenant or one Family).

Bearing in mind the fact that you are asking for a 100% mortgage I am very doubtful that you will get any more than you have already been offered.

It's all about risk to the lender, and never forget that yu are asking them to 'lend' you money. As such they can refuse your appliction without having to justify why.

If you have been told your max is £160,000, then that's it I'm afraid.

Andy

Doozergirl

AndrewSmith wrote:

You wont qualify for Buy to let for 3 reasons:

Hi Andy :wave:

Apart from the fact that £280,00 is a lot to borrow on a 100% mortgage; out of interest, isn't there be some kind of self-cert that would allow you the anticipated income? I'm sure I'd heard property programs talking of lodgers increasing the amount you could borrow?

To the OP - I do think it would be wiser to look for something smaller - even one extra room to let out on a smaller, more reasonable mortgage would provide some cash in the bank for more deposit on a bigger house in the future? I've got two kids and I don't have or need a four bed, though on the next house, we'll be building an extention - far cheaper than paying for the extra bedroom at the off.

AndrewSmith

Doozergirl wrote:

Apart from the fact that £280,00 is a lot to borrow on a 100% mortgage; out of interest, isn't there be some kind of self-cert that would allow you the anticipated income? I'm sure I'd heard property programs talking of lodgers increasing the amount you could borrow?

Hi Doozergirl :wave:

Yes you can consider using anticipated income for self cert as long as it is viable and genuine. The problem here is the lack of deposit. For self cert you need an absolute minimum of 10% and even this will not get you the most competetive rates.

Andy

robwend

Doozergirl wrote:

Think you might be - generally, someone would take out a BTL mortgage before they actually owned the property and so they would be unable to let it until they'd aready received the funds. They have to trust that you will let the property.

see told ya ner ner ner ner ner lol:D

Doozergirl

Not if you read Andy's answer to my question

lynzpower

I would also be cautious about the statement "Ill be renting two rooms out" how do you actually KNOW this? I had a freind whod given me her word she was going to move in with me, and she did, bless her, then after 8 months she moved in with her bf. Then another freind moved in, was fine until she moved home after Xmas. In October I moved my fiancee in which, I think contributed to her moving home. Weve now got a spare double room, all new furniture brilliant flat, but no one to move in, We had some weirdos phoning up, we didnt want them to move in etc, and decided we will only let the room to someone we know, like & trust. there may be someone in the offing, maybe not, but in any event we've now come to the decision that we will sell and get a smaller flat as we simply dont need the space we've got.

My advice is therefore, dont buy too big for yourself even if you can get a mortgage. If you cant afford it betrween you, then you shouldnt even consider it. Sorry to say, but Ive been burned by it pretty badly. Rooms with the l/l in place are NOT easy to let ( dont know where abouts you are though) and in any case, getting lodger income is an "extra" you certainly shouldnt build it into your financial plan, in case for whatever reason it doesnt come off. Which is why the banks wont have it either.

Cornel

Thanks 4 all the threads, what is the next step? how do i rais the 10-15% Dep? a loan from the bank or a nother bank? or save...

Doozergirl

This is MoneySAVINGExpert, you know the answer .

Don't buy until you can afford it.