What are my best options if I saved most of my earnings due to living with parents?

VictoriaWapping

(I detailed my general situation in the Housing subforum but wanted to ask about different solutions specifically)
In summary: I lived with my parents until recently (my late 20s). They left the country and I started living with friends. My family is now in very deep trouble and I want to support them but I believe my best chances are through career progression (very high income in higher ranks).

Meanwhile, would it be possible for someone in my situation to get a loan of considerably large amount?

My only expenses so far have been my further education and my hobbies, which still leaves me with enough savings to support myself alone on rent in a good central location for about 1-2 years, but not my whole family let alone buy a house.

I believe my job-related earnings should grow consistently over the next 2 years so I don't expect to be in debt.

Will appreciate all advice... especially as this is the first time I am doing anything in personal finance

Thrugelmir

VictoriaWapping wrote: »

Meanwhile, would it be possible for someone in my situation to get a loan of considerably large amount?

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What's your annual income and how much do wish to borrow?

VictoriaWapping

Thrugelmir wrote: »

What's your annual income and how much do wish to borrow?

Annual income is 35k basic plus commission on results (last year ca 40k).

I want to borrow as much as I will need to make up for the situation... buy a house to put on rent, plus all expenses related to it... I expect around 100k.

Caz3121

VictoriaWapping wrote: »

Annual income is 35k basic plus commission on results (last year ca 40k).

I want to borrow as much as I will need to make up for the situation... buy a house to put on rent, plus all expenses related to it... I expect around 100k.

So are you looking for a property to rent out rather than live in?
You will likely need 25% deposit and the rent should cover 125% of the mortgage.
Most lenders will not consider a BTL for someone that does not already own a property or have a residential mortgage

How much deposit do you have?

VictoriaWapping

Caz3121 wrote: »

So are you looking for a property to rent out rather than live in?
You will likely need 25% deposit and the rent should cover 125% of the mortgage.
Most lenders will not consider a BTL for someone that does not already own a property or have a residential mortgage

How much deposit do you have?

I am considering every option - the most likely one would be where I live and share a room because I will be working overseas on several weeks but need a stable base back here in London. Even just for the sake of leaving all my stuff, and having some income stream to cover.

What do you mean by deposit? Apologies, I am so very new to this that I barely understand...

Pixie5740

VictoriaWapping wrote: »

I am considering every option - the most likely one would be where I live and share a room because I will be working overseas on several weeks but need a stable base back here in London. Even just for the sake of leaving all my stuff, and having some income stream to cover.

What do you mean by deposit? Apologies, I am so very new to this that I barely understand...

It sounds like what you require is a mortgage rather than a personal loan. To get a mortgage you will require a deposit which would be a percentage of the total purchase price.

For example say you were to purchase a property for £100,000.

• 10% deposit would be £10,000
• 20% deposit would be £20,000
• 25% deposit would be £25,000

You would have to put some money towards buying the property as you cannot borrow the full amount from the bank.

Buying a property in London ia also likely to incur stamp duty, plus you would need to pay solicitors fees and for surveys.

Tixy

Pixie5740 wrote: »

It sounds like what you require is a mortgage rather than a personal loan. To get a mortgage you will require a deposit which would be a percentage of the total purchase price.

Just to add to this. You cannot borrow the deposit you would need in addition to a mortgage amount..

Ideally a mortgage lender would expect you to have saved up a deposit yourself already. Although gifts from relatives can also be accepted (they must be gifts though, not loans that your relatives need you to repay).

VictoriaWapping

Ah, hadn't seen the last two replies.

I think I would be able to deposit around £40/50,000, though with some help from (very good) relatives if necessary also £100,000.

Being a little bit disabled, I really would prefer to not make too many compromises on comfort and convenient location, etc.

Caz3121

What are the price ranges of the properties that would fit your requirements?

duchy

You mentioned your parents have moved abroad-Are you planning to live with them abroad or in the UK ? (mades a difference if you are a UK resident or not)

Pixie5740

VictoriaWapping wrote: »

Ah, hadn't seen the last two replies.

I think I would be able to deposit around £40/50,000, though with some help from (very good) relatives if necessary also £100,000.

Being a little bit disabled, I really would prefer to not make too many compromises on comfort and convenient location, etc.

What sort of property are you looking to buy? Are you wanting a property to live in yourself? A property to live in yourself and large enough to take in a lodger? A property that you want to let out completely and not live in yourself?

Are you still wanting to buy a property in London? What is your income as this will play a big part in what you can afford.