FTB/BTL when living in tied accommodation

dumbalino

Hi,

I'm new to the forum, though am an avid user of the website.

I am a financial dunce (though don't fare too badly to be fair!), but particularly where mortgages are concerned as we are fortunate enough to live in tied accommodation (well, fortunate providing you aren't made redundant, twice...) and it is a contractual obligation to do so.

Partly due to the previous redundancies, we have been looking into the possibility of maybe, potentially, perhaps buying a house to let out now, but as a back up for the future, and would definitely be needed by retirement age regardless.

A scout around of potential mortgages highlighted we'll need a bigger deposit for the type of property we would be looking at than we have just now due to the % involved, but we were willing to commit to the saving of the rest. However a quick read around the forum this evening suggests we would be very lucky to even find a lender willing to take a risk on us as FTBs/with no residential mortgage, but that isn't ever going to happen while we have the funds to do it, ie while my husband is in gainful employment.

There must be a way of doing this, we certainly can't be the only profession stuck in this scenario?

Anyway, enough rambling, I would be very appreciative of any advice the moneysaving experts could offer.

TIA

ACG

It is possible, its just not many lenders do BTL's for first time buyers.

There are lenders who you can do residential mortgages with and then obtain consent to let - not all lenders will do this and not all will do it so soon after buying the property and some may refuse it.

It might be worth a chat with a mortgage advisor and see if they can help. Like you say, im sure you wont be the first in this position.

dumbalino

Thanks for your advice ACG, think we are going to have to man up and speak to someone in the know, as you say. There just seem to be so many costs involved at every step, just to find stuff out!

Thanks again :beer:

kingstreet

"Costs to find stuff out?"

Can you expand on that, please?

ACG

To speak to a broker shouldnt cost anything.

They might charge something upon application and you will have to pay for lenders fees etc but just an initial chat and factfind should be free of charge.

dumbalino

Ah ok, thanks ACG I assumed (obviously incorrectly - apologies) that the advice would come at a price. So how does the broker 'recoup' costs - through the mortgage providers?

kingstreet - 'costs to find out stuff' - beyond my previous assumption, I meant surveys, homebuyers report, valuation, LA search etc. I appreciate they find out a little more than 'stuff', sorry if that blithely belittled the process in some way.

ACG

Not all advisors charge for advice, a lot do though. They may also receive commission from the lender.

Sorry, probably a little misunderstanding... the factfind, as in where we gather information and give you an idea as to whether its possible or not is free.
To receive an actual recommendation of who to use etc may cost.

kingstreet

There should be no costs before the application process starts.

Once you agree a purchase and apply for a mortgage, the usual fees become payable at different points in the process.