Possible for me to buy (within next 6 months)?

M0ney

Just wanted to get opinions from people who may be a little more knowledgeable than me...

Currently I rent with my partner (SAHM) and 2 children.

I own a small property which (a BTL mortgage has just been approved on it).

small property value £90,000 mortgage £63,000
Rental value £600/month
Savings ~£7,000
Our house rent £550
Value of house we'd be looking to buy up to £150,000
My salary £55,000

I've read HTB is only available for people who don't already own a property and I don't want to sell my property.

Thrugelmir

M0ney wrote: »

I've read HTB is only available for people who don't already own a property and I don't want to sell my property.

Without doing so you may struggle to raise a sizable enough deposit.

kingstreet

With let properties in the background, you'll need at least 10% deposit, possibly more.

This assumes the lenders treats the let properties as self-financing and for this to happen the rent must be at last 125% of the monthly mortgage interest, assuming perhaps 6% per annum.

Yes, to qualify for either of the HTB schemes, you must own no other property by the time completion takes place.

M0ney

Thanks for the replies I had suspected my options would be very limited. Could I ask, in general is the let property a help or a hinderence to being accepted for a mortgage or should it make no difference, assuming that it is self funding and that I can muster up a 10% deposit?

betmunch

Whats a SAHM? Is this relevant to something? I don't know.


With that small deposit the BTL is a hindrance, but as Kingstreet says, once you get to 10% you should be OK.


I can think of at least one lender of the top on my head that would be unhappy with only 10% deposit.


Get on to your broker and do a full fact find to be sure who will take this application

lonestarfan

SAHM = stay at home mum. It's relevant as there's no income attached to that except child benefit.

lonestarfan

[QUOTE=betmunch;67613147
I can think of at least one lender of the top on my head that would be unhappy with only 10% deposit.


did you mean to say wouldn't be unhappy? Not sure I undrsand your reply otherwise. Cheers.

kingstreet

As an example, Nationwide max LTV is 85% for a second property and won't ignore the let properties until you can evidence at least one month's rent receipts.

M0ney

Thanks guys,
The BTL is over 10 years (4.44% 5yr fix) so my equity should increase on it quite quickly. I'd expect to have my savings up to around £15,000 by around the end of the year so hopefully we'll be in a position to get the mortgage around then.

betmunch

lonestarfan wrote: »

[QUOTE=betmunch;67613147
I can think of at least one lender of the top on my head that would be unhappy with only 10% deposit.


did you mean to say wouldn't be unhappy? Not sure I undrsand your reply otherwise. Cheers.

Thanks for the SAHM, these things frustrate me so much, then I have to remind myself I use them all the time. BTL, IO, AIP, etc!


I did mean unhappy, as in, if this question was put to me in a fact find there is one lender I would immediately exclude. I added the "at least" as there may be more I cant think off right away.


I can also think of a few that wouldn't be unhappy with the 10% deposit, but that wasn't the point I was making