Mortgage for a 21 year old

Piper_p

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lee111s

Unlikely I'd say.

Piper_p

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PBA

There are banks who will lend on a BTL basis to first time buyers. You will need to pass both their calculations though, so it will need to be affordable on a BTL and also a residential basis. Sounds like the BTL calculation wouldn't be a problem but the residential would prove tricky.

Piper_p

PBA wrote: »

There are banks who will lend on a BTL basis to first time buyers. You will need to pass both their calculations though, so it will need to be affordable on a BTL and also a residential basis. Sounds like the BTL calculation wouldn't be a problem but the residential would prove tricky.

Thanks for the advice PBA, the rent would easily cover the Interest Only payments by 125% (although I'm going to be using my salary to pay off the mortgage anyway and not relying on the rent at all) but what do you mean by residential basis? Again, thanks for your reply :beer:

ViolaLass

Piper_p wrote: »

Thanks for the advice PBA, the rent would easily cover the Interest Only payments by 125% (although I'm going to be using my salary to pay off the mortgage anyway and not relying on the rent at all) but what do you mean by residential basis?

At 6%?

Residential = not BTL i.e. you living there.

Piper_p

ViolaLass wrote: »

At 6%?

Residential = not BTL i.e. you living there.

Yes the rental income would cover the mortgage payments at 6% interest since it's interest only.

dimbo61

You stated you are on minimum wage.
Now most BTL lenders require an Income of over £25,000 and a home owner.

ExpertAdvice

There are a few things to consider.

There are only 1 or 2 lenders that would offer BTL to First Time Buyers and their criteria is to have a minimum salary of £25K pa with 25% deposit. Deposit is fine but salary is the issue here.

Also, since you don't own a residential property, the amount that the lender would offer would be similar to how they would offer a residential mortgage based on affordability. So, say 4.5 - 5 times of your salary even if the rental calculation fits in. However, having said that the minimum income required would be still £25K.

The lenders that don't require a minimum income as their lending criteria don't offer BTL for First Time Buyers. Atleast, I don't know of any. May be someone can correct me.

Piper_p

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Yorkie1

Now you're clutching at straws to be honest.

A first time buyer is someone who doesn't presently own a home. If you transfer your Dad's house into your name, then you would presently own a home - and no longer be a FTB.

But that is a massively risky thing for your Dad to do (assuming this is his only residence & property). He loses any security of house ownership, and depends wholly on you for the foreseeable future. Don't put him in jeopardy for what then becomes a selfish, impatient plan.