A complex first buyer situation

KingJP

Hi all, some advise would be greatly appreciated.

I am approaching graduation soon and am interesting in buying a house to develop. The problem is buying the house rather than developing it!

Firstly I have looked at commerical mortgages but these are usually at at 75% LTV and require past business records which I do not have, not even being a business. If anyone has any info in this area please share it!

Secondly I have looked at the domestic mortgages market.

Doing some rough maths I would only have to pay back £365 a month in a capital and interest mortgage for a £60K house. The trouble is getting this mortgage in the first place. Using the rough multiples I need a £15K salary to get a £60K mortgage.

How do mortgage companies tell your salary? How long would I have to be bringing in this amount for? Is it possible to keep a £15K a year job for as long as to get the mortgage and then drop it down to enough to live and pay off the monthly charges.

I know I haven't taken into account the loan needed for redevelopment but hopefully I would get accepted for an unsecured loan (or secure it against the house I guess?) and all the fees but was wondering more on how to get accepted for the mortgage.

Many thanks for any help.

John

maninthestreet

Where is the £15k income going to come from? £15k a year means less than a £1000/month to live on after tax and NI. Whilst you are paying the £365 on the house, which you intend to renovate, where will you be living, and how will you pay your living costs?

KingJP

Hi,

Thanks for the reply.

The 15K a year would come from a labouring job, before tax etc.

I would not be able to work full time and renovate a house quickly, so I would have to cut down my hours once I have a mortgage.

I would live in the house I was renovating as much as possible to cut down on costs but if this is not possible at certain times I will be doing this in the same area that my parents lives.

As for only having £600 odd to live on after I've paid my mortgage assuming I had a £15K a year job - that is loads!! Much more than I've ever been used to!

Cheers.

John

Phil_rich

You need to find the 25% deposit if you get a business loan apposed to a 10% deposit if you get a domestic one. Therefore if you got a domestic mortgage then you may not need another load to pay for the renovations.

lypsey

Out of curiousity where can you buy a 60K house ???

going2die_rich

Mortgages aren't just given out without any checking you know. Most banks won't lend the money if you haven't held the job for at least 6 months if not a year.

KingJP

Well this is just market research at the moment - something I'm looking into rather than something I'm telling you I'm doing - so thanks for all the help.

http://www.mouseprice.com/SearchResults_Free_House_Prices.aspx?PostCode=pl

Give some indications on house prices.

Going2die_rich - thanks for the figures - that was what I was after - how long I needed a job for, for that to count as my salary.

Thanks all

John