House buying advice needed

EMMAH1410

I have just had my bankruptcy removed from my credit report after 6 years. I have saved £5,000 so far for a deposit for a house but have just found out that in order to buy to let i will need a minimum of 25% deposit. I am moving in with my partner - who already has a property but he has made it clear that I wont be added to his mortgage as this is his investment for his childrens future. I also have two children and want to invest in something for them. I dont just want to put money into a savings pot for them as I need a back up plan if things should go wrong in my relationship. I desperately want to buy something that will give me a return - I have considered holiday homes and caravans and just dont know which option would be best for me. When I move in with him I will get rid of all of my belongings so I have to be sure that Im doing the right thing and I also want the security of having some kind of investment should the worst happen. Can anyone give me any advice on which is the best way to go with this please? Im hoping to have another £3000 saved by the end of June but it still wont be enough for a buy to let mortgage...

Skiddaw1

Forgive me if I'm being presumptive/speaking out of term but are you sure you really want to move in with this man? Really sure? As you say, if the relationship breaks down you're potentially going to be left with nothing. Would it not perhaps be better, if you can afford it, to buy something where you can live with your children or rent for a time to allow you more opportunity to save? I don't think buy to let is going to answer your dilemma to be honest. Do you really want the responsibilities/liabilities of being a landlord when you've just been discharged from bankruptcy?

spadoosh

Id be invest in a savings account.

The fact that you saved £5000 before realising youdneed 25% for a btl deposit suggest youre not too clued up on BTL in general. Its not a quick buck business anymore, you have responsibilities, which should you fail them can result in you going to jail. Ok thats extreme, but have a look at the BTL forums in here and see some of the issues and expenses that arise. Its work. If you do really want to get in to that, you need to put a lot of effort in to research and understand exactly what is expected of you and what you should expect.

Caravans in general are not hugely profitable. They come with more conditions attached than your typical BTL mortgage. Again requires a lot of involvement.

You can do these but neither are options where you pay the initial amount and just collect the rent. Theres a lot more to it. And ultimately the returns arent that far away from what youd get in a savings account with a lot more risk to it.


You can get a 2.38% fixed savings account. Average rental yields are 3.6%. OK there will be some accounting involved making them look closer than they probably are but the gains arent what they once where.

lincroft1710

Investing in a BTL will not be any use as a back up plan should the relationship fail. Forget investing in a holiday home/caravan. If you fear the relationship may fail, either don't move in or keep some money in an easy access account.

At the moment you are in no position to invest in your children's future other than putting money in a savings account

PasturesNew

Your best bet is to keep dating him for another 2-3 years and, meanwhile, buy your own home.....

It all sounds very tenuous.

EMMAH1410

Thankyou for all of the advice - i have decided to move in with him and keep saving. I have worked out i can save an average of 800 per month whilst im living with him so should be able to put away a nice little nest egg for my future and my childrens future.