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Mortgage Newbie (First time buyer)
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steamers123
Posts: 6 Forumite
Hey guys,
I'm completely new to this forum and completely clueless in the world of mortgages, I would really appreciate any help/advice you can give me regarding my questions:
I'm 27 and have been in my current job (finance assistant) for 7 months now, I'm currently earning £17,000 per annum, no bonus.
Is it possible to get a mortgage of any sort, and how much roughly?
I am interested in a house worth £250,000 and can get up to £150,000 deposit (with the help of family and friends). How does this affect my chances?
I am currently renting a place, would it be possible purchase the above house and rent it out to offset the mortgage?
I've spoken to a few agents and they said yes, but I've read that you need a buy-to-let mortgage for that?
Or is there another way around it?
What if, I were to live in the house and rent out the other rooms, does this change anything?
Regarding work, what happens in the event of losing your job after securing a mortgage?
What happens if you get a pay rise/higher paying job, are you able to borrow more?
Are estate agent mortgage advisers better than the ones from a bank?
I'd really appreciate any help.
Thanks
I'm completely new to this forum and completely clueless in the world of mortgages, I would really appreciate any help/advice you can give me regarding my questions:
I'm 27 and have been in my current job (finance assistant) for 7 months now, I'm currently earning £17,000 per annum, no bonus.
Is it possible to get a mortgage of any sort, and how much roughly?
I am interested in a house worth £250,000 and can get up to £150,000 deposit (with the help of family and friends). How does this affect my chances?
I am currently renting a place, would it be possible purchase the above house and rent it out to offset the mortgage?
I've spoken to a few agents and they said yes, but I've read that you need a buy-to-let mortgage for that?
Or is there another way around it?
What if, I were to live in the house and rent out the other rooms, does this change anything?
Regarding work, what happens in the event of losing your job after securing a mortgage?
What happens if you get a pay rise/higher paying job, are you able to borrow more?
Are estate agent mortgage advisers better than the ones from a bank?
I'd really appreciate any help.
Thanks

0
Comments
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Speak to an independent mortgage broker.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.0 -
steamers123 wrote: »Hey guys,
I'm completely new to this forum and completely clueless in the world of mortgages, I would really appreciate any help/advice you can give me regarding my questions:
I'm 27 and have been in my current job (finance assistant) for 7 months now, I'm currently earning £17,000 per annum, no bonus.
Is it possible to get a mortgage of any sort, and how much roughly?I am interested in a house worth £250,000 and can get up to £150,000 deposit (with the help of family and friends). How does this affect my chances?I am currently renting a place, would it be possible purchase the above house and rent it out to offset the mortgage?
I've spoken to a few agents and they said yes, but I've read that you need a buy-to-let mortgage for that?
Or is there another way around it?What if, I were to live in the house and rent out the other rooms, does this change anything?Regarding work, what happens in the event of losing your job after securing a mortgage?What happens if you get a pay rise/higher paying job, are you able to borrow more?Are estate agent mortgage advisers better than the ones from a bank?I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thanks for the help kingstreet.kingstreet wrote: »
If you intend to let the property, you will need a BTL mortgage. Many lenders will not want to lend to you as you do not own your own home and don't meet many minimum personal income minima.
Does the size of my deposit (over 50%) have any influence over this?
What are the general minimum requirements for a BTL?
Are there any circumstances that I could let out with a normal mortage?If you wish to take in lodgers, the income from them will not be taken into account until you're been receiving it for an acceptable period of time.
Thanks for this, but I mean would it need to be a buy-to-let if I were to occupy one of the rooms and let out the other(s)?
I would recommend neither. An independent broker would be your best first port of call. Talk to lenders only where they do not accept business from brokers, such as HSBC.
Do you know how much mortgage brokers charge? / do you have any recommendations? (I live in London)0 -
A BTL mortgage normally requires;-
25% deposit
min income £25k
homeowner
rental income of 125% of monthly mortgage interest assuming 6% pa.
Your deposit makes no difference. One or two lenders will lend to a FTB on a BTL basis, but they will look closely at your income to prevent people side-stepping the residential affordability rules to buy a home for themselves.
You cannot let from day one with a residential mortgage. If after a year or two, you need consent to let for a legitimate reason, some lenders may grant this for a short time with a fee, increased rate, or both.
If taking in lodgers, you would not need a BTL mortgage.
Broker charges vary from £0 upwards. I am unable to make recommendations. Shop around and ask friends and relatives for a recommendation. Specifically avoid limited-panel advisors in national estate agency chains. That's the worst of all worlds.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thanks again kingstreet, really helpful. :beer:You cannot let from day one with a residential mortgage. If after a year or two, you need consent to let for a legitimate reason, some lenders may grant this for a short time with a fee, increased rate, or both.
If taking in lodgers, you would not need a BTL mortgage.
Sorry if i'm misunderstanding, but are you saying I can't take in lodgers from day one? and why is it for a short time only?
Or are they two completely different scenarios?Broker charges vary from £0 upwards. I am unable to make recommendations. Shop around and ask friends and relatives for a recommendation. Specifically avoid limited-panel advisors in national estate agency chains. That's the worst of all worlds.
May I ask why estate agency advisers are not recommended?
What about from smaller estate agents?
If you have any knowledge in government first time buyer schemes, do they allow lodgers too?
Thanks Again0 -
renting out the whole house, and living there and having a lodger or lodgers are two separate scenarios. The first requires the lender's permission. The second does not (although you do have to make sure that you have a gas safety certificate, and there may be further requirements if you were to have more than one lodger.
Estate agents advisors are not recommended because they are not independent, may not necessarily be familiar with a full range of products and , as you would normally have made initial enquiries about getting an agreement in principle before you select a house, you can end up with the Agents knowing too much about your personal financial position which can disadvantage you in negotiating on a purchase.
You best bet is to look for an independent advisor who can focus on what best meets our needs, without being influenced by the agents.
Similarly, the issue with the advisor at a bank is that they can only advise about that bank's products, not about the full range of available options.All posts are my personal opinion, not formal advice Always get proper, professional advice (particularly about anything legal!)0 -
Letting is offering the whole property for rent and moving out. For that you would request consent to let if you have a residential mortgage.
Taking in lodgers when you continue to reside in the property is a different thing. You may not need permission to do this, or you may have to inform your lender you are doing it.
National chain estate agency advisors usually;-
charge a fee
have a small panel of lenders (which feed their survey arm with work as a result of the "ties")
are tied to one insurer for home insurance
are tied to one insurer for life and health insurances
push expensive/poor in-house conveyancing services
push their in-house survey arm.
No upside for the client.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0
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