Would I get a mortgage?

Darlyd

I have 10k set aside, and I am going from part time work = 70 hr a mnth (£400-£500)to just over 100 hours a month (£1000-£1500 + )with much more pay. My credit file is good.

DH owns our property with his parents on the deeds as they paid half for the house, he got mortgage for his half. (I am not on the deeds nor am I on the mortgage, and I can not as DH has told me, another story :mad:)

I want a BTL property so I have something that is mine. As long as rent covers mortgage and after fees to an agent I am left with something to set aside and when have enough money then pay a chunk of the mortgage to reduce it.

What am my chances? Who could I talk too, to find out? Would I have to wait till I have had more than my current wages paid in for a year (I bank with halifax DH got mortgage with nationwide 6 years after going bankrupt, different story again)

Werdnal

Many lenders specify 25% minimum deposit for a BTL, so this may hamper your chances.

Are you also aware of the legal obligations of becoming a LL. You would need LL insurance, annual gas safety checks, and a contingency to cover repairs and maintenance of the property. You also need to declare rental income for tax, so if you are already going to be earning more, this may also have implications.

Are you stable enough financially to cover mortgage if there are voids in the let, or your tenants go bad and stop paying?

The vibes I get from your OP are the you are more than a little :mad: with your DH, and maybe using this as a kneejerk reaction to get back at him over your name not being on your deeds/mortgage? Think very carefully, and research the implications of becoming a LL, as you do not want to give him an "I told you so" opportunity !

Whilst your plans to gain some property for yourself might be a good idea, it can quickly turn into an expensive millstone 'round you neck if things go pear-shaped!

kingstreet

Many lenders want you to own a property to live in before they'll lend you money for an investment.

The maximum BTL you'll get is 85% of the loan to value, but the rate's poor and the fees enormous. The closer you can get to 75%, the better it'll be.

Last point, the rental income must exceed the interest-only mortgage payments by around 25% using a rate of around 5% to 6%, depending on the lender.

So, a property costing £100,000 means you'll need at least £15k deposit, but £20k - £25k would be better. For an £80k mortgage, the interest would be £400 per month and you'd need rental income of £500 per month to justify that level of borrowing.

Darlyd

Werdnal wrote: »

Many lenders specify 25% minimum deposit for a BTL, so this may hamper your chances.

Are you also aware of the legal obligations of becoming a LL. You would need LL insurance, annual gas safety checks, and a contingency to cover repairs and maintenance of the property. You also need to declare rental income for tax, so if you are already going to be earning more, this may also have implications.

Are you stable enough financially to cover mortgage if there are voids in the let, or your tenants go bad and stop paying?

The vibes I get from your OP are the you are more than a little :mad: with your DH, and maybe using this as a kneejerk reaction to get back at him over your name not being on your deeds/mortgage? Think very carefully, and research the implications of becoming a LL, as you do not want to give him an "I told you so" opportunity !

Whilst your plans to gain some property for yourself might be a good idea, it can quickly turn into an expensive millstone 'round you neck if things go pear-shaped!

No not at all, I just want to own something of my own, always have done.

I suppose perhaps I would be better off buying a property If I can get a mortgage and then doing it up and selling it on? Keep doing it until I raise enough to buy one out right. ? what you think? I love "homes under the hammer", And get so frustrated that I am in my 30's and have never done anything like that yet, even though I want too, and have always wanted too.

In the future then perhaps BTL, I have no problems doing it as a business, as long as I get good tenants, and enough to pay off mortgage (if I don't have enough to buy outright of course).

I just have no idea where to start. Shall I wait untill I have been working with my new company for a year, so I can show a good annual income OR try now? To buy, do up and sell on, I will perhaps go to auction, after I have done research on the location etc. People can pick up some right bargains this way..

I guess I just want to secure a future for my eldest DD, loads of talk about DD2 getting the house when DH passes, and I know 100% she will be included in the will with MIL BUT I doubt DD1 will be, as she is not his. Just the way they work I guess. Totally a different story. I just want to be secure myself, and own something, except a car !! And I have always wanted to do this, My brother stated some years ago, and he is now building his own property in London, Only half funded by a mortgage. Done well for himself. I am just so buddy slow.... and had kids before a career ..