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Would I get a mortgage?

hi456
hi456 Posts: 3 Newbie
in Mortgages & endowments
I was wondering if I could get some advice.

I'm 22 and have quite a bit of savings in the bank and I am considering buying a house to let out. I only earn £14500 a year, do I have much chance of getting a mortgage?

Thanks in advance :)

Comments

  • Tinaroo
    Tinaroo Posts: 42 Forumite
    Eighth Anniversary Combo Breaker
    How much is quite a bit of savings?
  • ACG
    ACG Posts: 24,891 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    You would need a 25% deposit, there could be lenders but less than a handful.

    Its worth speaking to a broker.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • hi456
    hi456 Posts: 3 Newbie
    Deposit would be around the 40k mark
  • csgohan4
    csgohan4 Posts: 10,602 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    depends how much is your budget?
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"

    G_M/ Bowlhead99 RIP
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    hi456 wrote: »
    I was wondering if I could get some advice.

    I'm 22 and have quite a bit of savings in the bank and I am considering buying a house to let out. I only earn £14500 a year, do I have much chance of getting a mortgage?

    Thanks in advance :)
    With some mortgage providers you don't need any personal income at all to get a BTL mortgage. You can borrow up to 75% of the properties value as long as the rent covers the interest maybe by 125% or 130% they all have different figures and you have some left over. They use a higher rate of interest to cover a couple of increases in the base rate. Some use 5.5% some use more or less.

    Generally though they'll only lend to people without an income if they are experienced BTL investors having owned and let a property for some time and/or you own your own home with or without a mortgage.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
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