My newbie mortgage questions (post 38 onwards)

jockosjungle

The idea of a guarantor is that they are liable if you cannot pay your mortgage for some reason. I strongly doubt they'd give you a mortgage even with a guarantor as you still have no way of paying your mortgage (don't think you can pay in heroin). The idea of a guarantor is a bit of safety for the bank, in this scenario the guarantor would be paying the mortgage from day one.

If you have no means to pay but think you can do, it'll flag some money laundering alarm anyway and you'd have to explain where you got the deposit, which I doubt would be very good for you

R

ILW

Possibly a !!!!! hit man?

Why can't I say M a f i a?

Conrad

The OP is perhaps on benefits / in the black economy - there are plenty of such people, some of them very rich, that have no apparant earned income.

The guy who owns a static mobile home site here, has no apparant income, yet he lives in a £2m home and has various other properties.

OP - there are b2l lenders that do not need income proof but will likely decline on the default.

Otherwise there are lenders that may accept the default but will only accept working people.As to leaving a job later - well thats something most of us do at one time or tuther.

marking_bad

So much discussion on my income. I wish I was good looking enough to even consider selling my body, I'd be lucky to get tuppence a go. Maybe if I was the duchess of york... Anyway... there are plenty of legal ways to make a bit of money, a few of them are on this site. It's a pointless discussion now anyhow, I have abandoned the idea of getting a mortgage based purely on my current income.

Are there other ways to do it? Legal ways only. How about...


-A family member takes out a buy to let mortgage on a house of my choosing. I provide the deposit as a gift.

-They agree to let the property out to me, I am effectively paying the mortgage.

-The family member agrees to gift the property to me at the end of the mortgage.

-I buy the family member a KFC meal deal for their trouble.

Aything dodgy about that? Apart from the falling out with the family member and them refusing to give the house to me, or me not paying the rent but then they can just sell the house and make a profit from my deposit.

If they die can they leave a house to me in their will, even if the mortgage isnt paid... oh man, this could get complicated.

HappyMJ

marking_bad wrote: »

So much discussion on my income. I wish I was good looking enough to even consider selling my body, I'd be lucky to get tuppence a go. Maybe if I was the duchess of york... Anyway... there are plenty of legal ways to make a bit of money, a few of them are on this site. It's a pointless discussion now anyhow, I have abandoned the idea of getting a mortgage based purely on my current income.

Are there other ways to do it? Legal ways only. How about...


-A family member takes out a buy to let mortgage on a house of my choosing. I provide the deposit as a gift.

-They agree to let the property out to me, I am effectively paying the mortgage.

-The family member agrees to gift the property to me at the end of the mortgage.

-I buy the family member a KFC meal deal for their trouble.

Aything dodgy about that? Apart from the falling out with the family member and them refusing to give the house to me, or me not paying the rent but then they can just sell the house and make a profit from my deposit.

If they die can they leave a house to me in their will, even if the mortgage isnt paid... oh man, this could get complicated.

It's not dodgy there are many legal ways but be careful of point 3 if you are going to claim housing benefit. You won't be able to.

You could also buy a share of a house with someone else providing the remainder of the money using their own home as security for a mortgage. Then you rent their share from them as normal with no beneficial interest in the share you don't own. Again for housing benefit purposes.

Conrad

Many ways to approach but to involved to go into here - would need about 20 posts - life to short and all that!

marking_bad

How would tax come into it, if I went down the shared equity route?

marking_bad

More newbie questions.

If I (or at least someone who could get a mortgage) take out a mortgage for 10 years, £50k, I'd eventually have to pay back about £60k in total at 5%, yes/no? What if I'd paid half of it back 5 years in, but had enough to pay the rest of would I have to pay £17k or £33k back in a lump sum? Is it possible to do that, are there charges for it? (I'm not sure about the figures, I guess I'm saying the amount borrowed, or the amount borrowed plus the interest you would have had to have paid for the full term or is it the amount borrowed minus the interest already paid on it, so paid £25k, not including interest, with 25k left to pay?)

Also, if you already have a mortgage on a house, and wanted to take out another mortgage on a house that you wanted to rent, does it have to be BTL? I know you must inform the lender that you are letting it out, but does that necessarily make it a BTL mortgage?

These are probably so newbie they are laughable, but please humour me.

Mr._Nice

marking_bad wrote: »

If I (or at least someone who could get a mortgage) take out a mortgage for 10 years, £50k, I'd eventually have to pay back about £60k in total at 5%, yes/no?

Not too far out, total replayments after 10 year 5% mortgage is £63.6k.

marking_bad wrote: »

What if I'd paid half of it back 5 years in, but had enough to pay the rest of would I have to pay £17k or £33k back in a lump sum?

Not quite sure what you're asking here. If you mean how much is still owed after 5 years of the above mortgage, its £28.1k

marking_bad wrote: »

Is it possible to do that, are there charges for it?

Early repayment charges depend entirely on your particular mortgage. In general, they only apply during the period of the "deal", and not once you're back on the SVR. Some life of the mortgage trackers also have ERC's for the first few years too.

marking_bad wrote: »

(I'm not sure about the figures, I guess I'm saying the amount borrowed, or the amount borrowed plus the interest you would have had to have paid for the full term or is it the amount borrowed minus the interest already paid on it, so paid £25k, not including interest, with 25k left to pay?)

These days, ERC's when they do apply rarely involve a calculation based on the actual amount of interest, and are usually just a flat percentage of the entire amount either originally borrowed or still outstanding in some form.

marking_bad wrote: »

Also, if you already have a mortgage on a house, and wanted to take out another mortgage on a house that you wanted to rent, does it have to be BTL? I know you must inform the lender that you are letting it out, but does that necessarily make it a BTL mortgage?

It will have to be BTL, since to get a residential mortgage would imply lying on your mortgage application.

Raggs_2

There are plenty of legal ways to make cash. But unless your gambling, most of the others should have tax paid on them, if you are paying tax on a regular income (self employed etc) then you should have papers/documents to back up your income and get a regular mortgage.