Generically speaking, whats the best option to go for these days? Ltv/term etc?

KILOCHARLIE

My girlfriend has just had an offer accepted on a house and she is a first time buyer as she currently lives with her folks. The price agreed is for £160k.

She currently has a decent sized deposit saved of 50k but is totally unsure of what type of mortgage to get. A mortgage broker has advised of numerous deals she could get but they seem very hard to compare and choose from with regards to how much of a deposit to put in and how long of a term.

The house will primarily be used for us to live in for at least 6 months as it needs a lot of work and we plan to live there when doing it up. After that we will either continue to live there or most likely rent it out and buy somewhere else with both of buying somewhere together. The mortgages offered all have to option to rent it out at a later date (for a small fee)

She would like not to put all her savings into a deposit so that we have money to start adding to for our joint property but we are unsure whether a 70%, 80% or 90% ltv would be better (even if paying the higher rates for a higher ltv) since rates seem to be pretty good at the moment and its hard to weigh up whether money in the bank to invest at a later date would be better with paying a higher rate or to put in as much as possible to lower the rate. This would then leave her with less for a deposit for our joint place.

We both have decent jobs so are flexible if rates rise in the future but on face value, would it be better to fix for 2/3/5 years or go for a tracking or discount mortgage?

Would be grateful for any face value advice for which are the best deals to go for at the moment so would be grateful if any of you guys have any advice?

Thanks all!!!

Thrugelmir

Why buy a property to live in for only six months?

I ask as if you intend letting the property then tying yourself into a lender for an extended period at the outset restricts your options somewhat. Also the lender will have to be agreeable to your plans. There's inherent danger that they will assume you are attempting to get a BTL mortgage by the back door so to speak.

Letting property is not an investment. It's a business. With all the rewards come all the risks. Not least that tenants will be clued up as to their rights.

dimbo61

Cart before the horse comes to mind.
Does she know how much she can borrow ?
Are you also going onto the mortgage.
If the property needs a lot of work will she even get a mortgage even with a 25% deposit.
Most BTL require 25% deposit and the property must be ready to rent.

amnblog

These questions should be addressed to the broker she has. That is what the broker is paid for. The broker knows here situation and is best placed to advise.

KILOCHARLIE

Thanks guys. Yes the property needs a bit of work but nothing major so we're confident we'll get whatever mortgage as its decently priced. For what it is anyway. She's on around 50k salary too so should be no probs there.

I appreciate the broker should be able to advise but I would br grateful for any advice jst for a general concensus or a second opinion if nothing else.

Thankd again

goodwithsaving

If you do own together now, I suggest tenants in common. This will protect her deposit in the unfortunate event of a split further down the line. Unless she is buying it solely in her name, which I sense is what is being done.
Likewise, both she and you should be careful of how payments with regards to 'doing up' the property work.

£50k may seem a lot to earn but with inevitable stoppages, it isn't as much as generally perceived. Make sure the place isn't too expensive to run, and bear future rate rises in mind for afforability.

I'd suggest your girlfriend asks these questions directly to her mortgage advisor. I'm sure they will be able to find a right fit (there isn't a one-size-fits-all).