First Time buyer need big mortgage

Gloomy_Past_Bright_Future

redlady_1 wrote: »

And just be careful. You are pinning everything on this one house. What if the business goes pear shaped? What if the price of property falls? So many other factors to take into consideration and it seems the bank would basically take everything were you to default.

We know this, trust me it is a worry, but the business is my husband and I, we have good customers and long term contracts, so even if they took everything which they would, we would still have each other and our children, the other things are just materialistic.
Our customers love us, we know we could start again. We are both from tough working class backgrounds from rough areas, we are not scared of hard work, we have been up to our eyes in debt, we got through and we would do again as long as we had each other and our children.

redlady_1

Well, I hope you have plenty stashed for a rainy day. You have been in debt before so know the implications. I know I sound like the doom and gloom merchant but once bitten and all that...You are looking at a 90% + mortgage on a big old place.

My broker was in Essex and I live in Wiltshire! Phone around a few and get a feel if you dont know anyone in the immediate area.

VIGILANT22

beecher2 wrote: »

I find this difficult to believe

So do I....!!

However my concern here is what the rates would be on exiting the 5yr fixed....for sure it will be a payment shock...no way will you find a rate anywhere like a 1.2% mortgage in 5yrs...more like 5%...so your monthly payments will probably increase by another 1k

g_attrill

redlady_1 wrote: »

And just be careful. You are pinning everything on this one house. What if the business goes pear shaped? What if the price of property falls? So many other factors to take into consideration and it seems the bank would basically take everything were you to default.

I would agree - given the business growth has been rapid, buy somewhere cheaper and see how things go for for a year or two and plough the extra into savings and then look again when you are certain that buying a much bigger/more expensive place is feasible.

edit: I missed your reply about wanting to put down roots, but perhaps one more step up to your main house would be sensible.

smcqis

I would speak to a broker, they will be best to advise you

dimbo61

Got to agree with g_attrill
Why not look at a smaller place for under £250K
only 1% stamp duty and you then have a 20% deposit and overpay/ build up savings so that you clear the mortgage in 5 years.
£200K mortgage and not a £500K mortgage and smaller bills for upkeep

suisidevw

Top advice ^

Gloomy_Past_Bright_Future

dimbo61 wrote: »

Got to agree with g_attrill
Why not look at a smaller place for under £250K
only 1% stamp duty and you then have a 20% deposit and overpay/ build up savings so that you clear the mortgage in 5 years.
£200K mortgage and not a £500K mortgage and smaller bills for upkeep

There are no family homes around here for under 250k!, a property for under 250k around here you wouldn't be able to fit the cat in, never mind swing it round!

We would also need a double garage for deliveries Cheapest house for that we have seen is 379k, and then still have to rent the unit at £700 per month for storage.

The house we are looking to buy is actually a small house on a large plot of land with lots of outbuildings (workshops etc) which is what we need for the business. So upkeep of the house costs would not reflect cost of the house iyswim.

dimbo61

Well good luck with getting the house and the mortgage
I live in a very nice 4 bed detached house in a lovely part of cheshire with a double garage and parking for 4/5 cars.
If you do get the 5 year mortgage for 1.2% please post the good news.
with Lloyds and will be knocking at there door !

Gloomy_Past_Bright_Future

dimbo61 wrote: »

Well good luck with getting the house and the mortgage
I live in a very nice 4 bed detached house in a lovely part of cheshire with a double garage and parking for 4/5 cars.
If you do get the 5 year mortgage for 1.2% please post the good news.
with Lloyds and will be knocking at there door !

I will let you know meeting later this week.

Look for flying pigs!

Your house sounds lovely

GPBF