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How much can I borrow?

MoneyWaster2007
Posts: 422 Forumite
Hi all, I'm trying to save a deposit for a buy to let. I'm aiming for £25k. But my income is only £15k so I'm concerned that regardless of the size of my downpayment will be irrelevant as the bank will only lend me s small amount/ nothing based on my salary. Can anyone make this clearer for me please? Thanks
Total in ISAs = £8,863.50
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Comments
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You could possibly borrow up to around £60,000 if you have a £25,000 deposit on a £85,000 house based on your income. You should quite easily get a £45,000 mortage. The exact amount will depend on the lender so I'd suggest you go and see a broker. If you have any other debts, HP agreements, child support payments to make I'd be looking at the lower figure. If you have no other commitments I'd look at the higher figure. Depends on what rent/mortgage you are currently paying too. If you have no rent/mortgage then I don't see why not. With a BTL you can also use the rent that you will get as income too so you could even borrow more.:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S)
Loans cost 2.9% per year (Nationwide) = FREE money.
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Thanks, so would a smaller deposit of say £10k be accepted for a £70k mortgage on a flat or apartment? I'm about 1 year away from having £10k. Would there be other costs involved. I apologise as I'm not very clued up on mortgages but am eager to get a btl as a source of cash flow.Total in ISAs = £8,863.500
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To get clued up, try the Money Advice Service's mortgage calculator and advice.Value-for-money-for-me-puhleeze!
"No man is worth, crawling on the earth"- adapted from Bob Crewe and Bob Gaudio
Hope is not a strategy...A child is for life, not just 18 years....Don't get me started on the NHS, because you won't win...I love chaz-ing!
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You won't be able to get a buy to let0
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Do you own a house already?
Some BTL lenders won't lend unless you already own a property you live in. Some don't lend unless you earn a minimum amount (often £25k or so).
The deposit needed on BTLs is also normally higher than the deposit needed for a residential property - a minimum of 20% to 25%.
All of those together may make things very difficult for you I'm afraid.0 -
Why do you want a buy to let? They can be a lot of work and can land you with sudden repair bills that must be paid immediately (e.g. new roof). With the amount of money you have to invest I'd recommend something safer and easier, even if it does have a slightly lower return.Note: Unless otherwise stated, my property related posts refer to England & Wales. Please make sure you state if you are discussing Scotland or elsewhere as laws differ.0
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You have a low income and a small amount of savings, are you sure that becoming a professional landlord is really for you?
How would you cope if your tenants stopped paying their rent for 6 months?Thinking critically since 1996....0 -
Well I'd heard about Robert Kiyosaki (not sure if that's the correct spelling) saying that a mortgage is only an asset if it puts money in your pocket each month ie. through renting it out. It seems like a btl is out of the question according to the replies here.
Would a £10k deposit be accepted by a bank for a £70k flat that I'd live in myself?
At the moment I'm living in a cross between a flat/ bed sit and hoping to move somewhere nicer.
My money is all saved in ISA's. Coventry BS dor this year at 2.6% and Santander previous years at 3.3%Total in ISAs = £8,863.500 -
https://www.youtube.com/watch?v=giwgYnSi-EU
Please !!!!!! watch this. If not the whole thing skip to 53.20.
Take an honest look at yourself and ask yourself if that young boy in the diner is you. If it is you're chasing a dream you will NEVER achieve.
Take that 15k and buy an education. A friend of mine from university (chemical engineering) has just started his first job on 70k.
I know you only came here for mortgage advice but that Kiyosaki reference warranted an intervention!0 -
You could possibly borrow up to around £60,000 if you have a £25,000 deposit on a £85,000 house based on your income. You should quite easily get a £45,000 mortage. The exact amount will depend on the lender so I'd suggest you go and see a broker. If you have any other debts, HP agreements, child support payments to make I'd be looking at the lower figure. If you have no other commitments I'd look at the higher figure. Depends on what rent/mortgage you are currently paying too. If you have no rent/mortgage then I don't see why not. With a BTL you can also use the rent that you will get as income too so you could even borrow more.
things have changed from what they used to be, most BTL lenders require a minimum income of 25k per year although there is a few that will lend on 20k, they also require a 25%.
Also the minimum purchase price for almost every lender is 50k. so you will have to buy something over 50k.
most lenders will NOT count rent as income these days.0
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