Buying a second house?

herbiesjp

newwife wrote:

I've consulted both a financial advisor and a mortgage broker, for interest in how their opinions might differ!
The mortgage broker has come up with some great ideas and was very positive. She suggested scrapping my current Newcastle BS mortgage and borrowing 85% of my Welsh house on a BTL. She is confident that this can be done with fees thrown in.
This would give me approx £93k - 23 owing = £70k +21 cash to make a £91k deposit on the second house.
Based on borrowing £145k on the second house (includes enough to cover stamp duty and fees on a price of £230k) she has come up with approx figure of £846 per month for 25 years. As I am currently paying £700 pm rent, and have been used to paying £300pm on a car loan I've now paid off, this is easily in reach. This has even encouraged us to look at other houses up to
£250k.
This would be a self-certify mortgage due to it just being on my income, but sharing the house and expenses with my husband ,and his cousin who rents a room from us for £300 pm.

The financial advisor wasn't so hot and just seems keen to sell us life insurance with the mortgage!

How does this all sound to you guys???

Hi there

The first part sounds like what I was getting at in post number two here.

I can't comment on the rest of it as I know nothing of your situation - not sure why you are looking at a self cert mortgage?

MortgageMamma

newwife wrote:

I've consulted both a financial advisor and a mortgage broker, for interest in how their opinions might differ!
The mortgage broker has come up with some great ideas and was very positive. She suggested scrapping my current Newcastle BS mortgage and borrowing 85% of my Welsh house on a BTL. She is confident that this can be done with fees thrown in.
This would give me approx £93k - 23 owing = £70k +21 cash to make a £91k deposit on the second house.
Based on borrowing £145k on the second house (includes enough to cover stamp duty and fees on a price of £230k) she has come up with approx figure of £846 per month for 25 years. As I am currently paying £700 pm rent, and have been used to paying £300pm on a car loan I've now paid off, this is easily in reach. This has even encouraged us to look at other houses up to
£250k.
This would be a self-certify mortgage due to it just being on my income, but sharing the house and expenses with my husband ,and his cousin who rents a room from us for £300 pm.

The financial advisor wasn't so hot and just seems keen to sell us life insurance with the mortgage!

How does this all sound to you guys???

Thats nearly 6 times your income you are wanting to borrow. I don't mean to be a pessimist or anything but consider this:

how would you pay that mortgage if your husband left you, or you couldnt rely on his income anymore?

What if your lodger moves otu?

I take it that payment is interest only. How will you repay your mortgage at the end of the term.

I would urge you to consider borrowing less than this, perhaps 4.25 x your salary under the circumstances

newwife

MortgageMamma wrote:

how would you pay that mortgage if your husband left you, or you couldnt rely on his income anymore?

What if your lodger moves otu?

I take it that payment is interest only. How will you repay your mortgage at the end of the term.

I'm hoping that my new husband isn't planning to leave me! But I 'd expect that this is an issue facing anyone considering taking out a mortgage!
Our lodger is a relative, so slightly more reliable than most. But I've had lodgers with me for the last five years, and have never had problems replacing them when they move on. I'm hoping that would be the case if he chose to move on.
Both mortgages will be repayment.

I'm looking at a self cert mortgage because it has to be in my name only due to my husband's credit rating (or lack of!) I have more income than just my wages as my huband shares the current rent and bills, and the lodger pays £300 a month also.

I'm waiting for some more accurate figures from the broker, she's doing a soft search and getting back to me.

nw