Mortgage / Collateral / First time buyer Help!

thingthing

Hi all,


Was hoping for a bit of advice or ideas as I am a first time buyer and things are complicated and don't really know where to start..
Next year I am going to buy two houses from my father. One is a holiday house worth approx. £200k and the other is a cottage which we are going to stay in while letting the other on holiday lets as part of a business.
The cottage is going to be a 'gift' to myself and my wife and is also worth in the region of £200k.
We have around 80k savings and we are getting family help for the rest so we don't need a full mortgage.
We are both self employed and have only been so for around 3 months and make approx. £30k per year between us at the moment.
The cottage is an older house and we need to refurbish at approx. costs of £20k. We want a mortgage for this but don't know if its possible on our low self employed salary.
We need to keep a back-up of about 65k in our account for visa purposes for the next 5 years. We can use the savings after it has been approved.
I would imagine there is a very good chance of getting this but just don't know where to start. Can one house be used as Collateral? Are we better getting a loan?
Any advice or ideas would be much appreciated !

Thrugelmir

thingthing wrote: »

We are both self employed and have only been so for around 3 months and make approx. £30k per year between us at the moment.

With only 3 months trading you've no history for lenders to assess you on. Projections are speculative not fact. It's hard facts that matter.

the_matrix

Houses can't be used as collateral. Sorry it wasn't the answer you were looking for.

amnblog

You need to engage a mortgage broker - there are so many holes in this plan you are wasting your time without one.