Which mortgage conundrum

felinefancy

It all seemed so easy when we first thought about this.

We were planning on moving to West Yorkshire as hubby has a job he can transfer to and I can apply for a new job (eventually leaving current one that has enabled us to get a mortgage offer - my salary wouldn't change much in a new job up in West Yorkshire so mortgage we've been offered would be good reflection of what we can afford). We thought that we could start looking for a property now, buy and then let the house out until I get a job up there. However, wouldn't that mean that we would have to get a buy-to-let mortgage, even though that isn't our aim but who knows how long it would take me to get a job - 6 months, 1 year? Alternative would be to buy a property and leave it empty until we're ready to move but then that would mean continuing to pay rent for the property we're currently in, AND paying a mortgage - which we wouldn't be able to afford to do.

Another issue - we also need to think about my 77 widowed father who lives by himself in the middle of nowhere in Wales. Hubby and I could stay working in London and buy a property in Wales, he can live in it and pay us rent and we have somewhere to retire to eventually. Would we need a buy-to-let for that? Moving to Wales isn't feasible.

Someone did tell me because we're first time buyers (at the ripe old age of 53) - we could buy a property with a normal mortgage and let it out as it would be our 'first' home.... i.e. we wouldn't need a buy-to-let?!

I'm fed up of my current job and in the process of going for interviews in London with roles offering a £10k salary increase, but unsure whether to just focus on West Yorkshire with a view to getting a job and house up there asap.

Main concern is to get on the property ladder this year or early next year as it will be our final opportunity and we need some security for our retirement. Staying in London, even on £10k extra - it's too expensive to keep renting.

Thoughts/comments/options appreciated. Head is spinning and we are running out of time.

Thanks so much!

muhandis

Answering piecemeal -

1. If you were buying a house in West Yorkshire with the intention of letting it out immediately, yes you would need a BTL mortgage. Given that you aren't owner occupiers and are new landlords, that will significantly reduce your BTL options.

2. Again, if you were to buy a property in Wales to let it out to family, you would need both a BTL mortgage and a lender/product that is fine with letting to immediate family (most BTL lenders aren't).

3. "because we're first time buyers (at the ripe old age of 53) - we could buy a property with a normal mortgage and let it out as it would be our 'first' home" I don't know if you've misunderstood them, but this isn't correct.

felinefancy wrote: »

Thoughts/comments/options appreciated. Head is spinning and we are running out of time. Thanks so much!

felinefancy

Muhandis,

Thanks for response. This is as I thought.. so it seems we have two possible options:

One: keep looking for a job in West Yorkshire, move, get settled for say 6 months (probationary period) and then look for a property.

Two: Stay put, keep renting and try to save as much as possible over the next 12-14 years until retirement.)

Don't think BTL is an option especially with all the new clauses/conditions around it.

muhandis

In your place if I really wanted to move to W Yorks, I would do as you have said in Option one. Personally, I would always prefer renting in a new region first.

If I was ambivalent about staying where I am, and I qualify as an FTB, I might explore other government supported FTB schemes such as help to buy equity loan (Help to Buy London offers an equity loan of up to 40%, compared to 20% in the rest of England), shared ownership, etc.

felinefancy wrote: »

Muhandis,

Thanks for response. This is as I thought.. so it seems we have two possible options:

One: keep looking for a job in West Yorkshire, move, get settled for say 6 months (probationary period) and then look for a property.

Two: Stay put, keep renting and try to save as much as possible over the next 12-14 years until retirement.)

Don't think BTL is an option especially with all the new clauses/conditions around it.

getmore4less

When do you plan to retire?

Will that be to Wales?

Can you live(renting) in Yorkshire on hubby salary only?


Is father renting now?

If you buy father something will it be where you want to live.

I would not want the middle of nowere, I would want close to facilities like shops and doctors that are easy to get to with public transport

Bozzer89

Big up to West Yorkshire :-)

LuSiVe

Bear in mind that you can't just kick tenants out to suit yourself, so renting a house out 'until you get a job' is probably unrealistic.