80k deposit but cant get any type of Mortgage please help

nospaceforbaby

yes I think its too much stress and hassle and its basically mortgage fraud, I have spoken to the Wife and we have decided to buy a fix up property in Cornwall, the purchase price will be cheap as its in cornwall and also because the place is run down but I can raise the cash easily to fix the place up once we are in at a low purchase price, surely I can get 50-70k in mortgage finance despite the obstacles listed on this thread if I have an 80k deposit, this way I would be mortgage free and that would make me relaxed and happy, meanwhile the business will keep going and I will keep saving around 80k a year so we can move later on maybe back to Surrey later on. thanks

Opinion

London, Surrey, Wales, South Wales, Slovakia, now a fix up in Cornwall, then back to Surrey in future?

Fix up + stubborn, emotional wife + new born baby doesn't sound like a great idea to me.

suse*

I think you need to take a breath for a second. Just in this thread you are moving to surrey, wales, midlands, slovaki and now cornwall. As you have seen with your flat already property isn't the magical payday some people make out. You could end up leaping into a place you both end up hating, evern worse stuck in negative equity having to commute back to london if the work dries up. Sounds bad, well I've been there and am living this right now I am just lucky I don't have the baby to go with it.

If you're thinking of buying you need to be thinking about schools first and formost as I understand things. All those different places you listed would take a lot of research about each area and related schools and services. That is why people are also suggesting renting, because if you then decide you don't like an area you should still be better off by having more options as far as deposit / credit history etc but also aren't stuck in a different house you out grow in an area you can't escape. If you rent for a few years before the baby is big enough for school as well if you later find out it is a bad catchment area it will be a lot easier to then buy your forever home somewhere else. It will cost you less money in fee's / stamp duty etc etc then as well.

As for renting the flat out you say you have no equity, is that cause it was 100% mortgage originally and you haven't made much of a dent yet. You may find as I did the mortgage lender won't give you permission to rent it out unless you have 125% or more coming in. As others have said with the different insurance, inspections, loan deposits etc etc renting out to strangers is a huge gamble. With how the london house prices are shooting up, if there is another crash as your place hasn't risen much already, could you be risking ending up in negative equity as well. What will happen when the rates go up too if you only have 100 a month exra that won't cover an increase.

You can't panic buy something like a house, as much as your mrs is desperate to nest right now, as you will regret at lesure and even more if you wfh as you will be stuck there day in day out. Again I am speaking from experince, you can get giddy with contracting money when you're not used to it, it can feel like you've won the lottery, but take a breath, make a plan and risk assess like you would for work. Your plan isn't resliant enough and have enough plan b's but with a bit more thought over a longer time scale you could have what you're dreaming of quite easily.

beecher2

This thread doesn't ring true to me.

kidmugsy

nospaceforbaby wrote: »

thanks, I have a bit of a mental block on renting as it seems like wasted money

So you are happy to rent capital but not housing? That's daft.

Especially since the tax breaks will save you money on the rent.

kidmugsy

nospaceforbaby wrote: »

my Wife does not want to move and has friends around the Surrey hills area, she is stubborn as hell and just shouts and cry`s if I suggest slovakia or somewhere cheap like the midlands where im from

How very high maintenance. You are being a mug.

kidmugsy

beecher2 wrote: »

This thread doesn't ring true to me.

I think you might be right. For me the cats are the clue.

sulphate

kidmugsy wrote: »

I think you might be right. For me the cats are the clue.

Add that to the bit where he said he deliberately declared low earnings/profit so he could minimise his tax bill and save 80k? !!!!!!? Are the self emoyed not legally required to declare all their income?

stu007

nospaceforbaby wrote: »

if I rent it out I will gain as the property value rises but also I will gain maybe £100 a month in profit as the rental income exceeds my mortgage

And what happens if (when) interest rates rise?

haras_nosirrah

Talk about wanting your cake and eating it. You don't want to pay tax (so you can save) but you also want to use your undeclared earnings to get a mortgage. Paying your wife 100k a year won't work. Lenders do a plausibility check to pick out exactly this kind of practice and any broker who did this for you would be risking their job

Anyone else find it wrong that the op is paying less tax than a minimum wage cleaner?