First-time Mortgage Question

stu2500

Hi all, me and my partner are planning on buying our 'first home' together and I wanted to find out any pitfalls or issues we should be aware of to prepare for these. Our scenario is below.

I rent a flat (£500 per month) and I am classed as single occupant earning £21k basic and roughly £8k - £10k commission per year. My outgoings aren't too excessive, 1x loan at a cost of £200 per month which I've had for approximately 2 years with Barclays (no missed payments), and a small balance on a credit card which I will be paying off. This will be my first and only mortgage.

My partner is in a similar situation but she owns a flat with a mortgage on which has a small amount of equity. We want to rent her flat out (keep it as a retirement fund type of situation) and keep it going as a buy to let.

We are have a savings goal of £15k planned and to secure a house priced between £130k - £150k (depending on what is available on the market at the time, but we don't want to purchase a house that is beyond our salaries etc).

My main concern is the 2nd mortgage my partner has, can this affect us at all? We plan on having this rented out prior to applying for the mortgage. Thanks for any assistance.

Verix

My main concern would be that you're going to need more set aside for your stamp duty. Assuming a property price of £150,000, if you sell your partners property you need £500 for stamp duty, if you want to keep her property then it would be £5,000.

stu2500

A friend of mine warned me about this. Sorry to sound dumb, but how does this work or how is it calculated?