First Time Buyer Advice

joesanders95

Hi All,

I currently live (rent) and work in London and are 24 years old. I am originally from Liverpool and really want to get on the property ladder. Obviously down south is far too expensive for me to look at it, and I am not interested in shared ownership schemes. I am interested in property up north in Liverpool which I have enough deposit for and can afford the repayments (based on mortgage repayment calculators etc). However, I want to maintain living and renting and London - but I believe mortgage lenders would not be interested in this as I would not be living in the property I purchase up north. I am interested in knowing the ins and outs of this - as I would obviously not want to get into mortgage fraud!! But out of interest how would mortgage lenders know someone lives in the property? What's the best advice to do here? I really want to get on the property ladder and I can afford to do so, but it seems I have to live in the property! I also want to avoid a buy to let mortgage too. Thoughts?

asm89

Why obviously re down south affordability?

Do you mind sharing your salary and deposit level?

Do you actually plan to live in the property ever? Either way, you will have to go buy to let, and it may not be worth it given the changes to lettings relief coming in April. Any profit you make when you later sell to buy another home will be greatly reduced.

Caz3121

what are you planning to do with a property that you purchase?
rent it out? - you should be looking at BTL mortgages - usually 25% deposit
leave it empty and use it for occasional visits? - your living costs in London will reduce the affordability of mortgage

Exodi

asm89 wrote: »

Why obviously re down south affordability?

Let's be honest now, you couldn't buy a packet of crisps in London for what you'd sell a house for in Liverpool. They have mentioned they've already looked into affordability calculators.

@OP, as asm89 has said, a Buy To Let repayment mortgage would likely be most suitable though, as they also hinted, it would likely not be profitable from a monthly perspective (though you'd be generating equity).

asm89

Exodi wrote: »

Let's be honest now, you couldn't buy a packet of crisps in London for what you'd sell a house for in Liverpool. They have mentioned they've already looked into affordability calculators.

@OP, as asm89 has said, a Buy To Let repayment mortgage would likely be most suitable though, as they also hinted, it would likely not be profitable from a monthly perspective (though you'd be generating equity).

LOL fair enough

I was just checking, in case OP is in a high paying job or one due to be high paying and should just chill and save for another year or two to buy in London.

davidmcn

joesanders95 wrote: »

But out of interest how would mortgage lenders know someone lives in the property?

You'll be giving them details of your employment as part of the application. If your job is in London they're unlikely to believe that you're commuting from Lime Street.

joesanders95

Hi All,

Thanks for the replies - I wouldn't be renting the property out. Just occasionally staying when I go back to visit family - the main idea is getting on the property ladder. As mentioned I've checked affordability and can maintain living and renting in London whilst paying mortgage on a £100k property. I didn't ideally want to go down a buy to let mortgage if I am not renting the property out?

I also work from my laptop - so I don't necessarily have to be in London - so I can say I can work mobile?

Thanks.
Joe

davidmcn

If you're "just occasionally staying" there then it's not your main residence. So you'd need to find a lender happy for you to have a "second" home in Liverpool and who believes you when you tell them you don't actually have tenants in it.

fewcloudy

davidmcn wrote: »

If you're "just occasionally staying" there then it's not your main residence. So you'd need to find a lender happy for you to have a "second" home in Liverpool and who believes you when you tell them you don't actually have tenants in it.

And is that something a broker would know?

davidmcn

fewcloudy wrote: »

And is that something a broker would know?

Yes. Though the market for mortgages for things which are neither owner-occupiers' main residences or BTLs is somewhat limited. And depending on how "occasional" occupation is, there may also be difficulties with insurance.

Exodi

joesanders95 wrote: »

Hi All,

Thanks for the replies - I wouldn't be renting the property out. Just occasionally staying when I go back to visit family - the main idea is getting on the property ladder. As mentioned I've checked affordability and can maintain living and renting in London whilst paying mortgage on a £100k property. I didn't ideally want to go down a buy to let mortgage if I am not renting the property out?

I also work from my laptop - so I don't necessarily have to be in London - so I can say I can work mobile?

Thanks.
Joe

I think people were more implying you should consider renting the property out rather than assuming you were planning on it.

Let's not forget this is a money saving forum and getting a mortgage on a house you intend to leave empty the vast majority of the time isn't the most 'lucrative' of choices.

Since you've hinted at it - no-one on this forum will encourage mortgage fraud. It will be asked as part of the application if you will be resident - you will be unable to dodge this question by saying you are working from your laptop and earth being your home.

Why are you against buy to let? If this is for investment purposes then why buy a house at all?