First time buyer/buy to let question

adam_flanagan14

Hi


I'm finally looking at getting a foot on the property ladder with my partner. We have around £50000 between us for a deposit, however my partner is a student, working part time and I am currently looking to change careers which would involve starting an apprenticeship (and taking a substantial pay cut for a time)


We are both currently living with parents


It seems that even though we have a substantial deposit, to buy a house in our area (south east) will still mean getting a large mortgage and it would be difficult to meet monthly payments once I have changed jobs


With house prices rising and interest rates low we feel we'd be missing out if we didn't buy now. I need to stay in my job to be approved for a mortgage as my current wage is £2100 p/m and could be dropping to as little as £800-900

Our original idea was to buy a house with a buy to let mortgage and rent it out until we are both working full time. However I've been informed you cannot get a BTL mortgage without already having a regular mortgage. Is this true? Another option would be taking out a normal mortgage then trying to get consent to let it out from the lender. Does anybody know how easily this is done?


Any input would be greatly appreciated


Thanks


Adam


p.s. I'm completely new to this site and mortgages in general so apologies if I've got bits wrong or my questions don't make sense!

Thrugelmir

adam_flanagan14 wrote: »

With house prices rising and interest rates low we feel we'd be missing out if we didn't buy now.

Why? Higher interest rates may depress house prices. Low interest rates aren't going to last the next 25 years.

Why not simply continue to build your deposit? As BTL is a business. With reward there also comes risk. Running a business has no guaranteed outcome.

betmunch

It is not true that you cannot get a BTL mortgage without already owning your own home.

Chances of getting CTL on a residential right after buying are slim to none. While its possible is it a risk you want to take?

Babbawah

The people who might lend you the money are the best ones to decide whether or not you can afford to pay them back.

You should try applying, then examining the reasons why they rejected you.

If one of you is a student & the other an aprentice, then surely the combined brain capacity can work it out.

kerri_gt

What would your contingency be to pay the BTL mortgage if the property were vacant at any time? You would also need to factor in emergency funds should something at the property need doing, whilst you could build a fund from any rent payments above the monthly mortgage amount, what would you do if something major needed doing quite early on, for example, boiler replacement?

amnblog

Presumably our OP will keep some capital back to cover unusual costs after purchase.

silvercar

Babbawah wrote: »

The people who might lend you the money are the best ones to decide whether or not you can afford to pay them back.

You should try applying, then examining the reasons why they rejected you.

If one of you is a student & the other an aprentice, then surely the combined brain capacity can work it out.

Too many applications isnt good for your credit record. Better to go through a broker who will know which lenders will be sympathetic. Firing off applications to random lenders is not the way to go.