FTB: is this possible?

black_wings

Hello people

I am a FTB (30 years old) looking to apply for a sole mortgage. Property value will be 90-110k with a deposit of around 25-30k. So at best 67% LTV and at worst 77% LTV (I think?) I have 5k in addition to this for covering fees, moving costs etc.

Annual salary from employment is 32k. I have no debts. Have perfectly healthy credit file with proven record of paying off credit card in full each month. Never in my life had a late payment.

Okay so here is the thing...
Will be living in the property 3 days per week and living with a friend (free) 4 days per week for work. Commuting costs to and from work + to and from the home property will be £370 per month.

Just wondering if people think I could obtain a mortgage for this? I am hoping to get a decent rate and ideally would like a 10 yr fix but would be happy with 5. Thinking of going for a 30 year term but with the intention to overpay as and when I can.

foxy-stoat

Apply and keep quiet about living there 3 days out of 7 as you will hit a wall before you even begin.

Good luck.

black_wings

Thanks for the advice. I would keep quiet about it but the problem is that my work is so far away from where I am buying that they will surely know that it's impossible to commute it on a daily basis.

da_rule

As far as I'm aware it only causes problems with insurance and mortgages if the property is left empty for a prolonged period of time (usually 28 consecutive days). There are plenty of people who own homes but work away during the week etc. You are still occupying it as your primary residence (I assume you'll register everything to this address rather than your friends).

All you might want to think about is a decent quality alarm and good quality locks etc as it may be that you're away at the same times every week which would make the property an easy target.

black_wings

Thanks. Yes I assumed the insurances etc. might be an issue however the property certainly won't be left unoccupied for more than a week at the time. I will surely be registering that as my permanent address etc.
It probably doesn't help in the eyes of the insurer but at least for my own piece of mind, my family live in the same town and are retired so are able to check in by at any time.
My main concern; is will someone give me the mortgage on it. I spoke to my bank in branch (Santander) very briefly about it and they seemed to think it wasn't a problem at all - but I wasn't sure how knowledgeable the bloke actually was.

amnblog

foxy-stoat wrote: »

Apply and keep quiet about living there 3 days out of 7 as you will hit a wall before you even begin.

Good luck.

Not smart. It wont work.

Lovin_It

I've no experience here, but hinting that you work remotely and work address is just the hq might get round it, if they actually flag it up?

amnblog

A number of Lenders will accept this situation.

Key issues:

Some kind of link with the area in which you will purchase (e.g home town, family there)
Commuting costs affordable

If you don't want to fall flat on your face however, use a broker for this one.

Lovin_It

amnblog wrote: »

Not smart. It wont work.

Interesting, do they check this closely?

black_wings

Thanks all for the replies. I'm not sure that I feel comfortable with covering up the situation by saying I work from home full time etc. since the name of my employer is a well known university so it's obvious where they are based and my job title doesn't really sound like one which allows remote working 100% of the time. Would prefer not to get myself wrapped in little lies that may become undone.
I feel that the commuting costs are affordable and they came up as fine when I added them as a fixed monthly costs into the AIP soft search I did on natwest website.
I have a link to the area I am buying as it's the town I grew up in.

leespot

Lovin_It wrote: »

Interesting, do they check this closely?

In my experience with Santander, yes they do. During application my broker called to say they were questioning my purchase address in relation to my employers head office address - they are 280 miles apart. I work from home, and they were happy with this explanation. I also confirmed that the company cover all travel costs to head office when needed.