First mortgage advice

julieanne13

Hi :-)my son wants to buy a house to get on the property ladder, he has a job which is a start and 10% deposit. However he dose not want to live in the house he wants to let it and stay at home. Do you think he would get a morgage? His dad said we would gurantee it as well. Thank you Julie

ACG

Not with a 10% deposit. 20% atleast.

Because hes a first time buyer hes very limited to the number buy to let (BTL) deals available.
Guarantor mortgages for BTLs are not available.
But there are a few options available oncehe gets to the 20% deposit.

Thrugelmir

Suggest he invests in fixed term cash ISA's. A better way of securing a reasonable rate of return without the exposure to risks of running a business.

julieanne13

hes saves in the fixed term ISA's thats how he got the 10%. I cant belive how hard it is to get a mortgage now when we bought ours they were throwing money at us haha. I look at so many kids now and they all seem to rent as they have no choise such a shame. Thanks for the advice though :-) take care

Morgage_Confused

Its not necessarily that hard for him to get a mortgage to buy a property to live in....but you said he wanted to purchase a buy to let which is a very different proposition, hence the higher deposit required. Also there will be higher fees and interest rates aswell. Not to mention lots of other considerastions hence why it was suggested to invest in something different like an isa.

kingstreet

julieanne13 wrote: »

Hi :-)my son wants to buy a house to get on the property ladder, he has a job which is a start and 10% deposit. However he dose not want to live in the house he wants to let it and stay at home. Do you think he would get a morgage? His dad said we would gurantee it as well. Thank you Julie

Many BTL lenders will want;-

- a minimum personal income of £30k to £35k
- a minimum deposit of 20% or more
- your son to own a home of his own
- the monthly rent to exceed the mortgage interest (@6%pa) by 25%.

The initial stumbling block appears to be the deposit. I suggest he improves this respect of the proposition then contacts a good independent or whole market broker for further help and guidance.