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Is it worth doing?
cs90
Posts: 38 Forumite
Hi everyone.
Myself and the OH are looking to buy our own house at some point in 2015 if we find the right one. We are first time buyers. I am 24, she's 23. I work full time on £20k a year (excluding overtime which puts it up to about 24k), she will be a newly qualified teacher in Summer 2015 looking to start work in September 2015.
We are lucky enough to have £65k ish between us in total for a deposit. We're looking for a home in the region of 160-180k.
However, an opportunity has arisen...
A friend of the family is putting up a house of theirs for sale in the coming weeks. They were told by an estate agent it is worth 165k. 2 bedroom semi.
We don't want to buy it and move in right now because we're waiting for her to get work next year. We have thought about buying it, letting it out for a 2 year fixed term and then moving in ourselves. The worst case scenario is that no-one rents it and I am left to pay the mortgage for a year until she finds work and we can split it. I believe I can afford to do this, but hopefully it will get snapped up by someone who wants to rent it.
The question is, is it even worth me considering doing this? I imagine I'm highly likely to get rejected for a buy-to-let mortgage, especially seeing as I'm a first time buyer and not yet 25 years old. But, would the large deposit go well in our favour? Also, would it have to be a buy-to-let mortgage and after that term has finished, switch to a normal mortgage for us to move into?
I've come here first as I don't want to turn up to several mortgage meetings at the banks and look like a right wally! Any advice is highly appreciated!!
Cheers everyone.
Myself and the OH are looking to buy our own house at some point in 2015 if we find the right one. We are first time buyers. I am 24, she's 23. I work full time on £20k a year (excluding overtime which puts it up to about 24k), she will be a newly qualified teacher in Summer 2015 looking to start work in September 2015.
We are lucky enough to have £65k ish between us in total for a deposit. We're looking for a home in the region of 160-180k.
However, an opportunity has arisen...
A friend of the family is putting up a house of theirs for sale in the coming weeks. They were told by an estate agent it is worth 165k. 2 bedroom semi.
We don't want to buy it and move in right now because we're waiting for her to get work next year. We have thought about buying it, letting it out for a 2 year fixed term and then moving in ourselves. The worst case scenario is that no-one rents it and I am left to pay the mortgage for a year until she finds work and we can split it. I believe I can afford to do this, but hopefully it will get snapped up by someone who wants to rent it.
The question is, is it even worth me considering doing this? I imagine I'm highly likely to get rejected for a buy-to-let mortgage, especially seeing as I'm a first time buyer and not yet 25 years old. But, would the large deposit go well in our favour? Also, would it have to be a buy-to-let mortgage and after that term has finished, switch to a normal mortgage for us to move into?
I've come here first as I don't want to turn up to several mortgage meetings at the banks and look like a right wally! Any advice is highly appreciated!!
Cheers everyone.
0
Comments
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You will probably find it difficult to get a BTL mortgage if you currently don't already have a residential mortgage on a property."You were only supposed to blow the bl**dy doors off!!"0
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Yes, if you want to let the property out from the get go you'll need a BTL mortgage unless you want to commit fraud which I'm sure you don't.
I'm not sure why you need to wait to move into the property. If you jointly have a deposit of £65k then you should buy the property together as tenants in common or joint tenants regardless of whether your GF is working or not. The alternative is for her to gift you the money she's saved for the deposit so you can by the property in your name only which I would strongly advise her against doing.0 -
Yes, if you want to let the property out from the get go you'll need a BTL mortgage unless you want to commit fraud which I'm sure you don't.
I'm not sure why you need to wait to move into the property. If you jointly have a deposit of £65k then you should buy the property together as tenants in common or joint tenants regardless of whether your GF is working or not. The alternative is for her to gift you the money she's saved for the deposit so you can by the property in your name only which I would strongly advise her against doing.
Or they could get married, and so no need to gift anything (other than your hopes and dreams...)0 -
Yes, if you want to let the property out from the get go you'll need a BTL mortgage unless you want to commit fraud which I'm sure you don't.
I'm not sure why you need to wait to move into the property. If you jointly have a deposit of £65k then you should buy the property together as tenants in common or joint tenants regardless of whether your GF is working or not. The alternative is for her to gift you the money she's saved for the deposit so you can by the property in your name only which I would strongly advise her against doing.
The reason we want to wait is to take the small income per month from the BTL and in the mean time as we live together in her parents house we can continue to save ourselves without having to pay any bills. This equals lots of savings for when we do want to take the property on for ourselves as well as the mortgage already starting to be paid by the tenants!
I'll make the relevant appointments, but thought I'd check to see the general opinion on here as to whether we would even be considered for a BTL as first time buyers.0 -
Is the property large enough for you to live there and take in a lodger to help with the bills until your partner graduates?0
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How much do you know about becoming a landlord?Mornië utulië0
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