Advice on finance to but my rented home

Belfast27

Hi guys, I’m new to the site and looking for some help, I hope you don’t mind my question. I’m from Belfast, 27 years old, and in a stable job as a high street clothes store manager.

In August I made a 6 month agreement with a landlord to rent a 2 bedroom terrace house, however the landlord now wants to sell rather than renew another rent agreement and has offered me first choice at buying with a sale price of £66,000, he’d otherwise have an estate agent asking price of £69,500.

He already had a sale agreed of £68,950 early in 2018 before the buyer’s mortgage fell through, then took it off the market to rent it out instead.

However, I’m not in a position right this minute to buy because I haven’t enough deposit saved and spoke this week with an independent mortgage advisor who was happy with my affordability and gave me a quote of £280 a month repayment but told me to come back to them in 12 months when I have a little more saved, but I’ve made my home here and don’t want to lose it and have to move.

What I was wondering was, would there be any investors around who would be interested in buying where I would pay them a monthly rent of £100 above the monthly repayment amount and agree for me to buy back in 12-24 months time for an additional £2,000 above the sale price?

I understand it’s a little bit of an out of the ordinary request but I’m looking at all options to keep my home, any help would be very much appreciated. Thanks

MovingForwards

How much deposit do you already have?

MortgageMamma

Do you have a parent or relative that could gift you a deposit? Or a relative or friend who can go on the mortgage with you but not live there?

You may not need as much as you think. It could be possible to obtain a 95% mortgage depending on other factors of your circumstances.

When you apply for a mortgage you will need to provide proof of your deposit so you need the full deposit before you apply for the mortgage. If you are in receipt of a gifted deposit from a relative then they need to evidence the source of funds and write a letter to say they have gifted you the money. you don't have to pay it back and they hold no interest in the property.

There are also mortgages where a parent, friend or relative can help you on the property ladder, can come off the mortgage when sufficient equity has built in the property and you no longer need their support.

There are mortgages where a family member can put a sum of money in a bank account with the mortgage lender (in lieu of your deposit), which they get back with interest once you have made payments and created some equity in the property. Or you can repay them if you sell.

There are all sorts of solutions and I cannot believe the adviser you went to see sent you packing without considering some of the more specialist mortgages available.