Buying & Renting

UserElla

I am not taking the !!!! !!!!!!! I am a first time buyer and came here for advice! Maybe some of my questions may sound stupid but hence why i ask to understand how it works out there when buying!!
I am not committing any fraud as i am just weighing my options! And by all means you dont have to share your opinion if you dont wish too! And if you dont have the time then dont come here and waste your time. BTW you are wrong as the lender has said they will consider it after 6 months!

Appreciate everyones advice and suggestions!

marathonic

UserElla wrote: »

I am not taking the !!!! !!!!!!! I am a first time buyer and came here for advice! Maybe some of my questions may sound stupid but hence why i ask to understand how it works out there when buying!!
I am not committing any fraud as i am just weighing my options! And by all means you dont have to share your opinion if you dont wish too! And if you dont have the time then dont come here and waste your time. BTW you are wrong as the lender has said they will consider it after 6 months!

Appreciate everyones advice and suggestions!

One more post

I apologize if you are for real and need advice. The reason I replied is that I like to be helpful and the posts up to mine painted too rosy a picture for your circumstances. Whilst my advice sounded harsh, it is helpful (you will probably realise this sooner or later).

Where am I wrong? The lender saying they will consider giving you a mortgage in 6 months is a far cry away from any sort of guarantee. It's as good as me telling you that I'll consider giving you a mortgage in 6 months time.

UserElla

I am willing to accept harsh advice as thats what i came here for! I really like a house and (maybe) as many women out there when we like somethinf we go to get it! And this house has all i want, but i also know that it might not happen. My broker told me that but to convince me she did call the lender asking in general whether after someone gets a RTB mortgage could they swap to a BTL and they have said yes they would consider it after 6 months.

Not that i didnt believe my broker but i came out here to ask for opinions or really learn about what else could be done to maybe get my dream house.

I could potentially afford both mortgages but again it would put me in a financial strain, as i guess it would do to many.

The mortgage world is all new to me but am learning fast!

marathonic

Okay, well you're starting to sound genuine enough. You should post over on the Mortgages board (link below). Some of the brokers over there should be able to help advise as I've only got experience on residential mortgages (and not as a broker).

Your original post refers to "borrowing a little more" and, my understanding of your situation, is this borrowing was to be used for renovating but is now planned as a 10% deposit for a house.

The bank may have a problem with this - they don't like borrowed money being used as funds for a deposit. Just make sure that, over the 6-month waiting period, you maintain a good savings rate as this will make it easier to prove to the bank what you can actually afford.

http://forums.moneysavingexpert.com/forumdisplay.php?f=15

UserElla

Thank you . I will do, eventhough it sounds like i shouldnt get my hopes up as even if i could get the 2nd mortgage doubt it a vendor would wait 6 months for completion. My broker has adviced me to wait so i might take their advice. I think money wise too though (property prices are going up), my mortgage on flat will be £800 on BTL i can rent it out for £1500. My new
mortgage on 2nd property would be £1300 a month. Would the banks take the income i get from the rented property in consideration?

Thanks

marathonic

UserElla wrote: »

my mortgage on flat will be £800 on BTL i can rent it out for £1500.

UserElla wrote: »

Would the banks take the income i get from the rented property in consideration?

Thanks

It's unlikely. Your mortgage on the flat will be £800 but only a portion of that will be interest. This is the only part that can be used to offset as an expense against rental income.

After all your expenses, including tax, insurance, maintenance, voids, professional fees (accountant or letting agent), you're not going to have very much left from the £700 difference to be taken into account.

I believe they just ignore the BTL mortgage and income provided the rent is a certain percentage of the mortgage - I think I remember reading 125% before but you'd be better asking on the mortgages board.

Yorkie1

UserElla wrote: »

@silvercar - The rates would be too high on the second property as a BTL because its only 10% deposit, plus i doubt these days they can even give you a BTL on 10% deposit.

You need a minimum of 20% deposit on a BTL, rental income 125% of the mortgage at about 6% interest rate.

Are you therefore planning to apply for a residential mortgage on the second (i.e. rented out) property?

markchris07

I have question about the tax if i buy a property $400000 how much tax could i want to pay and Is that I want to consult with my accountant

Yorkie1

markchris07 wrote: »

I have question about the tax if i buy a property $400000 how much tax could i want to pay and Is that I want to consult with my accountant

This is a UK forum, not US so I suggest you post in a US forum.

Turnbull2000

Congratulations on your property windfall :beer:

You should make some good money in the years ahead as rents and values surge upwards.