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Looking for some advice with my plans

Hi folks

I am looking for some advice with plans with regards to mortgages, a little background, I am 27 and earning 42500 pa I have savings of 25000 so I am looking at a deposit of around 20000 maximum, and purchasing a property around the 180k mark, currently my girlfriend does not have enough to help me put a deposit together for this property so rather than wait for her to save I thought it might be wise to buy a property on my own (even of it was a cheaper apartment circa 140k rather than a house) and then wait for her to get the capital together, however my questions raised are

How easy would it be for me to get a second mortgage and buy somewhere with her when she's ready as I will already have a mortgage ( albeit the property would be rented out)??

If I rented the 1st property out I take it I would have to change to a B2L ??

Any advice on this situation would be welcome

Regards
«1

Comments

  • I also have a 999 credit rating on experian and as of December will have no outstanding debt
  • amnblog
    amnblog Posts: 12,768 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You can do this without a problem subject to usual underwriting.

    You will need either your lenders consent to let on your property, or to remortgage to a buy to let mortgage. The consent to let is the most practical option.

    Use an independent mortgage broker on both purchases so that you do not get tripped up.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Ok I understand that, what are the areas for potential slip ups with this that I should be looking to avoid?
  • Wh05apk
    Wh05apk Posts: 2,938 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Just because your girlfriend does not have a deposit is there any reason you want to do the purchase on your own?
    I am a mortgage adviser.
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • The main reason to do the purchase on my own was because she has only around 5k, she has just gone into full time employment so will begin to build up savings I would want to go into a purchase with her 50/50, I thought it might be wise to purchase something in the meantime while I wait for her to build up more savings, from the 25k I have I would be putting around 15k into a first purchase (my own purchase) then we as a couple would be looking at having around 10k to put into a home together, If I did this and rented out the 1st property it would be pretty crucial for it to be rented out, it's just an idea that we thought of? I guess there is a number of ways to go about this situation,
  • Wh05apk
    Wh05apk Posts: 2,938 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I think you need to consider if you are an "item" and if so do it jointly, possibly setting up some form of agreement to say that you get your deposit back first if you sell?

    Otherwise what will you do, set up a tenancy and charge her monthly rent?
    I am a mortgage adviser.
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • She would be living with me but I would have her paying a smaller amount to stay than she currently pays in rent ( and due to my line of work have a lodger mon-fri) which would subsidise the mortgage, essentially she is paying around £500 per month rent I would be reducing that to I think a maximum of £300 which would allow her to build up savings at a quicker rate too, I understand there is a lot of ifs and buts in this situation as well as there being 10 ways to skin a cat, I would certainly be open to purchasing with her but the 'what ifs' do come to mind, if I put 25k in and she put in 5k my reservation would be that if something happened in the future I would stand to lose quite a lot? Obviously I don't think or want this to happen but think it has to be considered within my decision
  • What sort of size deposit would we need if I already had a mortgage and my girlfriend and I decided to go and buy a 2nd property
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    Ross201085 wrote: »
    if I put 25k in and she put in 5k my reservation would be that if something happened in the future I would stand to lose quite a lot?

    The solicitor handling the transaction would draw up a declaration of trust. This would take account of contribution to deposit and any other matters you wanted included.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Ross201085 wrote: »
    I also have a 999 credit rating on experian and as of December will have no outstanding debt

    So you don't actually have a 10% deposit saved yet.
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