What "DO YOU" think i should do??

pbright

Please help a desperate/clueless student.

Obviously you wont be familiar with my exact situation but i am wandering what everybodys advice on what i should do would be....as i am clueless. Basically, i am seriously considering getting a mortgage....but dont know if i really can, and theres lots of factors to consider. So what i want to know is what you think i should do, and then if possibile, what kind of mortgage you think i should get.


....So heres my situation.

I have just finished Uni( £10,000 in debt :-( ) and my plan is to work for 7-8to save up to go travelling whilst also paying off the crucial debt(over-draft & CC) before i go. But i have been thinking about getting a mortgage on a house before i go if i can and renting the property out while i am away and most likely when i return as i intend to buy in the area my family and i are from but not work/live here when i return. I can only see making a Grand a month untill i go. How does the guarantor thing work. My mum/dad could maybe help me out...my mum makes around £32,000 a year and is paying off a mortgage(& owns a small second propert which is almost payed off) and my dad makes £22,000 a year and is paying off a mortgage on another house. Both would be unlikely to give me a deposit...maybe my mum could give me £3000...and both would like as little risk/invlovement as possibile if they even agree....i dont even know how the guarantor thing works though. If its worth while i could work longer say a year untill i go travelling and get a £5000 grand deposit(ill still have SAAS debt of around £8000 though).

Any advice, opinions, suggestions of ideas would be much appreciated. I dont know what options are open to me and what would be best for me to do.


Thanks ever so much.

pbright

Im bumping this! Why do you think i have got no replies, is it because itsa lenthy message or because people do not have any advice they can give me?

Thanks again..

silvercar

I'm no expert but here's my opinion.

Your Mum and Dad both have mortgages of their own so would be unlikely to be able to guarantee much of your mortgage.

To get a mortgage without a permanent job or job history will be difficult.

To do a buy-to-let without a property of your own will be very difficult. BTL mortgages require at least a 15% deposit.

If you don't ever intend living in this property, I'm not sure I see the benefit of buying it. Who will manage the property while you are travelling?

Personally I would work for a bit to pay off your debt, then go travelling. Come home get a permenant job, then worry about home owning.

Soory if its not what you want to hear, just my opinion.

zag2me

I wouldnt bother trying to get a mortgage now, Going traveling is great fun and can change your perception on life enough to not care about mortgages and 25 years of debt There is no need to jump on the housing ladder yet as prices are only going up around 3-5% a year.

Ian_W

I won't repeat the arguments above but they make complete sense to me.

You have quite a large debt, no real credit history and you will need a deposit of at least 11%, more usually 15 as silvercar says. The property will need to realise a monthly rent of at least 1.2/1.3x the mortgage payments and whilst you're travellin you'll need an agent [more costs] to let and look after it.

All in all, not a good plan IMO, particularly as the returns on new BTLs are quite low.

Sallys_Savings

I agree with the other posters...

I would enjoy yourself while you are young...pay your debt off ....travel the world and have a fantastic time.

You'll still have plenty of time to get onto the mortgage ladder on your return...and you're be in a far better situation with a job etc.

Good luck and have a great time !!!

Robert_Sterling

I also agree with other posters above.
You are in debt.
You are planning to spend money in due course on a holiday.
You want to borrow more money to buy to let.
It just does not add up.

pbright

Thanks all. I doubt that it would make much of a difference but my mum or dad would look after & let the place while i am gone! My mum almost owns a smaller house in full and still has a mortgage for the family home.I am sure they would gurantee some of the mortgage if they were allowed. I just thought that seeing as i would be away it would be good to own a property and the mortgage payments be payed by some-one else. But i have shot the idea down a little with your posts...you all speak sense. Thanks.