Is this do-able?

InsertWittyName

Hi.

Thanks in advance for any advice.

We're renting at the minute and a house has come onto the market two doors away that we're very interested in. The facts are:

House price: £137k
Me: £49.5k + 5% bonus PAYE, approx £7k per annum self employed income since Oct 2011.
Partner: Just accepted a part-time job for £1.6k (yes, £1600), not started yet.

I also own a flat that I used to live in with an ex partner but I haven't lived in for a few years. Mortgage is £275 per month, £38k outstanding. This won't be sold for approximately 1 year.

My partner has never owned or been party to a mortgage on a property before.

I have ~£19k cash savings and have £4.5k on a 0% purchases credit card (stooze).

Affordability I think we should be fine, but I'm thinking a broker would be better than diy for this case due to all the complications?

Thanks.

CKhalvashi

I think with 10% deposit, £5k fees and a near-£50k salary, you shouldn't have a problem.

I'm not a broker, but there will be one along soon to help you.

CK

Sooetie

If I had your resources I'd go to the banks/building societies directly. Why pay someone to do what you can do yourself

See which is doing the best mortgage deal and then once you choose let a solicitor sort out the details.

Are you really going to pay someone thousands of pounds to do what you know you can do yourself?

you must have some equity in the flat so it shouldn't be a problem

R_P_W

Sooetie wrote: »

If I had your resources I'd go to the banks/building societies directly. Why pay someone to do what you can do yourself

See which is doing the best mortgage deal and then once you choose let a solicitor sort out the details.

Are you really going to pay someone thousands of pounds to do what you know you can do yourself?

you must have some equity in the flat so it shouldn't be a problem

Which brokers cost thousands?

GMS

As this would be a second home for you then many lenders would restrict the Loan to Value so not all lenders would be available to you.

Broker may well be of use to you here.

InsertWittyName

GMS wrote: »

As this would be a second home for you then many lenders would restrict the Loan to Value so not all lenders would be available to you.

Broker may well be of use to you here.

Thanks GMS, those were my thoughts exactly.

I know, for example, that Nationwide don't go above 85% LTV for a second home.

Any other thoughts?

GMS

Broker may well be your best bet here.

As you have discovered there are lenders who will not consider.

marshall666

If you purchase with your partner then you will qualify for a first time mortgage, at least with Halifax.

This despite what brokers will tell you; at least L&C tried to tell me different.

I speak from experience as I'm doing exactly this. My partner is in her first property which she will rent out when we move (rather than sell), I am FTB currently renting and we are getting a FTB together with Halifax.
You can always apportion a percentage ownership if you don't want to be in it 50/50.

BTW I thought a broker would be the best bet too but it isn't that bad.
For peace of mind I got L&C to find me their best deal (free) and got quoted the figures but not the provider via Mortgage Advice Bureau (also free). This gave me a target interest rate at least.
They just accounted for the existing mortgage as an expense and offset the expected rental income against that in their affordability evaluation.

I would advise finding a mortgage deal that you like and then approach the bank directly. Some banks will want proof you have been letting for a couple of months, others will want to see a rental valuation by a letting agent.

Good luck!

YoungBusinessman

They wont take partners salary into it, nor your self employed income i was told you need 3 years if the self employed income is not main income (could be wrong though) But at 50k salary and 10% deposit(so long as you can prove its source) then i can see no problems. On 55kish(more than half is bonus) and i got over 100k mortgage no problem.

Katzen

Sooetie wrote: »

If I had your resources I'd go to the banks/building societies directly. Why pay someone to do what you can do yourself

See which is doing the best mortgage deal and then once you choose let a solicitor sort out the details.

Are you really going to pay someone thousands of pounds to do what you know you can do yourself?

you must have some equity in the flat so it shouldn't be a problem

We went with a broker as our situation is similarly complicated. Worth his weight in gold. I spent time checking deals online but he then found out that although they say 2nd home is fine it's actually not and other similar pit falls. He was also able to get us better interest rate offers than what was offered online. All that, plus some financial advice thrown in on whether to port current mortgage and fiddle about with home improvement loans. Only charged £130 which he then waived as he was recommended by a friend who does a lot of BTL business through him, and presumably because he knows now we will use him again when our fixed term ends. Will happily pay him next time

InsertWittyName

To add some closure I did take this to a broker, which is working out great.

Sometimes it's worth paying an expert to handle everything.