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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: 24,685 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: 10,600 Forumite
    Ninth Anniversary 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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