Mortgage Free?!... We'd just like a Mortgage!!

Hollypop_2

RenovationMan wrote: »

I think you'll need the landlord's permission if you are running a busines from the rented accomodation as it could impact his insurance.

I was going to suggest renting a garage (if it really is a necessity) and then downsizing and renting a 1 bed apartment but you have made it clear in your previous post that you are not prepared to do that.

If you cannot reduce your outgoings then the only way to fast track a deposit is to earn more money.

Thankyou - earning more money it is!

The landlord knows about the garage and the classic car ect and has since we moved in 2 years ago

RenovationMan

Hollypop wrote: »

In a way it is kind of a shame the banks dont look at your current situation and say something like 'right you have been paying £x amount in rent so we will lend the a mortgage equivilent to £x'

The banks do look at your current situation, but not in the way you wish. They would look at your situation and say something like 'you have no money left at the end of the month to put away for savings, therefore if we give you a mortgage and interest rates rise then you will have no spare financial capacity and will not be able to cope'.

Hollypop_2

RenovationMan wrote: »

The banks do look at your current situation, but not in the way you wish. They would look at your situation and say something like 'you have no money left at the end of the month to put away for savings, therefore if we give you a mortgage and interest rates rise then you will have no spare financial capacity and will not be able to cope'.

We've never had a mortgage before so to be honest we are both totally baffeled by them and the prospect!

As i say we do have a couple of hundered after everything each month that we then put away into the house account. so by oviously looking at this house that is £100 more a month in rent, we wouldnt have the £200 left to put away. So maybe we need to find somewhere to rent within the same price range as we have now. as surly putting something away each month is better than nothing in the long run?

glt1

Hi Hollypop,

My partner and I have just managed to buy our first house without the bank of mum and dad!

Andy is right, you won't get a mortgage without a deposit. We had a lot of difficulty because my partner is self employed (even though he has years of accounts) and to be honest, it felt like the banks just didn't want to lend us the money even though it was totally affordable for us. We had agreements in principle, and then when it came down to actually lending the banks suddenly decided they would only lend £100k. We ended up having to save 15% to get a rate under 6%.

The upside is we now have a better cushion in case house prices fall.

It was totally worth it - we pay a lot less in mortgage payments than next door do in rent, and half our payments are repayments, so money in the bank.

I feel your pain, but it sounds like you might have to rent a bit longer while you build up a deposit.
Maybe have a look at a couple of months worth of bank statements and see where your money is going and if there's anything you can cut down on?

Good luck!