Almost Purchased My First House.

SnowyOwl_2

tara747 wrote: »

In this case the OP is thinking of buying to let, not to live in. So you are right, it is a risk. Especially right now, with interest rates practically guaranteed to rise at some stage.

Oh right, the OP didn't say that when s/he invited our comments.

tara747

SnowyOwl wrote: »

Oh right, the OP didn't say that when s/he invited our comments.

Yes, she didn't mention it till post #6. I replied (post #2) assuming that it was going to be owner occupation too. The BTL aspect puts a different slant on it as you say...

former_student

I still feel the OP is in an excellent position, bolstered by today's news that house prices in NI have went up in the last quarter by 0.5%.

tara747

former_student wrote: »

I still feel the OP is in an excellent position, bolstered by today's news that house prices in NI have went up in the last quarter by 0.5%.

:rotfl::rotfl:

x12yhp

former_student wrote: »

I still feel the OP is in an excellent position.

Has the OP provided you information not seen on this thread? Do you know the OP's earnings? How about if they have a car loan? Total unsecured debts? Any deposit? Employment area and security?

I assume you must because no right minded individual would make the above statement if they did not....

shaz77_2

x12yhp wrote: »

Has the OP provided you information not seen on this thread? Do you know the OP's earnings? How about if they have a car loan? Total unsecured debts? Any deposit? Employment area and security?

I assume you must because no right minded individual would make the above statement if they did not....

Why don't you just ask me?

I earn 20,000 p/a, I am hoping to take out a mortgage of around 62K over 15 years, I am in the process of getting a fixed 2 year mortgage with A&L at 3.99%, however Northern Bank have advised me they maybe able to beat this rate.

This house is of a high quality and I envisage myself living in it, however for now I would either like to let out the entire house or just one of the rooms in order to aid the mortgage repayments, the B to L market in this area is quite good so hopefully I will not have too many problems.

The only debt I have is a student loan of around 6K that I pay back via my wages at the rate of £50 per month.

I'm glad everyone does not think that I am in cloud cuckoo land with my proposed purchase.

thriftyminx13

shaz77 wrote: »

Why don't you just ask me?

I earn 20,000 p/a, I am hoping to take out a mortgage of around 62K over 15 years, I am in the process of getting a fixed 2 year mortgage with A&L at 3.99%, however Northern Bank have advised me they maybe able to beat this rate.

This house is of a high quality and I envisage myself living in it, however for now I would either like to let out the entire house or just one of the rooms in order to aid the mortgage repayments, the B to L market in this area is quite good so hopefully I will not have too many problems.

The only debt I have is a student loan of around 6K that I pay back via my wages at the rate of £50 per month.

I'm glad everyone does not think that I am in cloud cuckoo land with my proposed purchase.

You sound like you are in a very strong position. I would definitely go for it. All the best with it, don't listen to these grumps!!

x12yhp

shaz77 wrote: »

Why don't you just ask me?

I earn 20,000 p/a, I am hoping to take out a mortgage of around 62K over 15 years, I am in the process of getting a fixed 2 year mortgage with A&L at 3.99%, however Northern Bank have advised me they maybe able to beat this rate.

This house is of a high quality and I envisage myself living in it, however for now I would either like to let out the entire house or just one of the rooms in order to aid the mortgage repayments, the B to L market in this area is quite good so hopefully I will not have too many problems.

The only debt I have is a student loan of around 6K that I pay back via my wages at the rate of £50 per month.

I'm glad everyone does not think that I am in cloud cuckoo land with my proposed purchase.

My comment was targetted at someone who stated that you were in a strong position but actually had NO IDEA what your position was. Whether, incidentally, right or wrong, the poster I responded to had absolutely no idea about what they were talking.

Since now you clarify your situation, your position does not seem bad. You are borrowing a sensible amount, you clearly have a history of being able to save so meeting the payments should be ok. The thing that concerns me is this letting idea. I have never looked into doing BTL but my understanding was that you would be expected to have different mortgages depending whether it was OO or BTL. As such, the OO mortgages were often less stringent and 'cheaper' but you were not meant to let the property. I think another poster also alluded to that earlier. So be very careful about the wording, I imagine the bank may well penalise you somewhat if this did turn out to be specifically excluded. Other than that.... you are probably not bad to go for it. Prices may very well fall further in time but, as long as you accept this, then you have more than enough equity to be safe. Best of luck!

tara747

shaz77 wrote: »

Why don't you just ask me?

I earn 20,000 p/a, I am hoping to take out a mortgage of around 62K over 15 years, I am in the process of getting a fixed 2 year mortgage with A&L at 3.99%, however Northern Bank have advised me they maybe able to beat this rate.

This house is of a high quality and I envisage myself living in it, however for now I would either like to let out the entire house or just one of the rooms in order to aid the mortgage repayments, the B to L market in this area is quite good so hopefully I will not have too many problems.

The only debt I have is a student loan of around 6K that I pay back via my wages at the rate of £50 per month.

I'm glad everyone does not think that I am in cloud cuckoo land with my proposed purchase.

x12yhp wasn't getting at you, he was questioning how former_student could possibly know what sort of position you were in.

Why buy to let, rather than keeping saving till you want to buy a place to live in? BTL can work out very expensive - voids, maintenance, rates, problem tenants etc can all eat into your bank balance. You haven't answered all the questions I asked earlier in the thread btw, they were intended to give you food for thought (just trying to be helpful ).

Oh and p.s. it is good form to thank people when they respond to your thread

shaz77_2

tara747 wrote: »

Uh oh...

This is not a good time to be a BTL landlord. Why do you want to do it? How much are you borrowing out of the £123k?

Unless you have a long fixed rate, be prepared for interest rates rising and your mortgage payments will rise too. Also, do you know that the rent you can achieve will cover the mortgage, rates and any expenses associated with maintenance etc? Are you covered for void periods?

Do you even know if there is a good rental market where the house is? Unless you are in an area with lots of students/young professionals (i.e. Belfast etc) you are more likely to have void periods when the house will not bring in any rental income. Also, your tenants are unlikely to want to maintain a huge garden, unless you offer a good discount on the rent.

Think carefully about this and do your own research.

The rental market is decent, its in Fermanagh and close to Enniskillen town, however I will not know for definite how good the rental market is until I try to lease my house.

I can easily maintain the garden myself.