Absolutely beginner a few question hope to be answered.

maxsquared

Dear all,

I am thinking of buying my first flat, and currently looking into something around 170k, my parents had promise me for around 80k-100k, and I am currently living with my partnet without having to pay any rent.

I have a pretty bad credit history, but if I pay more than 50% deposite, will I be likey to be accepted? Also the flat is brought to be rented, will the banks/building socities take this into consideration?

Many thanks.

Jacka87

From what I gather, you are looking to buy a flat as a buy to let, your parents are loaning you 50% ish of the property value and thus you will only need a 50% ltv (loan to value) mortgage.

There are many things that will mater in terms of getting a mortgage, if you have a bad credit history then check on experian or other credit rateing company and see what it says.

You have not mentioned your salary, if you are buying for your own home then banks lend against your salary. The best I have heard of at moment is around 4.99 times your salary but depends on credit rating etc. If its a buy to let then its a little different as they expect you to cover the cost if its not let but they appreciate you can let it out. However these mortgages are usually more expensive.

You say your parents are giving you the money for the deposit, I think that if that is the case you need to remember that you will need to pay them back that money (unless they are extremly generous and just giving you 100k!!). The bank will be less likely to give you a mortgage for 50% ltv if the other 50% is owed to somebody else, remember the bank gets there half first.

Really not sure that this is the best forum if you need to know about buy to lets, maybe try the letting forum.

maxsquared

Jacka87 wrote: »

From what I gather, you are looking to buy a flat as a buy to let, your parents are loaning you 50% ish of the property value and thus you will only need a 50% ltv (loan to value) mortgage.

There are many things that will mater in terms of getting a mortgage, if you have a bad credit history then check on experian or other credit rateing company and see what it says.

You have not mentioned your salary, if you are buying for your own home then banks lend against your salary. The best I have heard of at moment is around 4.99 times your salary but depends on credit rating etc. If its a buy to let then its a little different as they expect you to cover the cost if its not let but they appreciate you can let it out. However these mortgages are usually more expensive.

You say your parents are giving you the money for the deposit, I think that if that is the case you need to remember that you will need to pay them back that money (unless they are extremly generous and just giving you 100k!!). The bank will be less likely to give you a mortgage for 50% ltv if the other 50% is owed to somebody else, remember the bank gets there half first.

Really not sure that this is the best forum if you need to know about buy to lets, maybe try the letting forum.

Thanks for sammarise the whole thing for me. Yes you are exactly right, I will be given the 50% ish deposit and buy to let the flat. I will probably look around and see if I can get thing. The only thing I am unsure is my credit history.

Jacka87

well I suggest you use one of the credit rating agencies and see what they say. If there are areas that are not good then you need to work on them. Make sure you are paying any credit cards etc in full every month, and try not apply for any credit in the near future apart from when you go for mortgage.

If the credit rateing sites give you a bad scor ethen it may be best to wait until its a better score before you apply for a mortgage. If you apply and get rejected then that will dent your score again. Remember that credit history lasts about 6 yrs, so anything you done before that will be forgotten.