Buying a property in the UK, first time buyer

jay1441

"done so mortgage would be approved" eh?

Combining our salaries so the mortgage can be approved. Also some of my money is in the property so got to have my name on it. All a bit confusing.

Redwino222

you part own a buy to let, but it sounds like you have fooled yourself into thinking you don’t.  

Have you seen a mortgage broker?  Yours is not a straightforward case - you need advice on whether a second mortgage on a second property is achievable.

grumiofoundation

jay1441 said:

"done so mortgage would be approved" eh?

Combining our salaries so the mortgage can be approved. Also some of my money is in the property so got to have my name on it. All a bit confusing.

As above doesn’t seem that confusing - sounds like you jointly own a BTl? 

Do you make any money from the BTL? 

Will the BTL be sold before you buy a property to live in? 

If the BTL is not sold before you buy a property costing £500k your name having been added to the mortgage will cost you an extra £20,000 in SDLT (£5k lost FTB relief, and 15k +3% additional dwelling SDLT). [30k total SDLT] 

AdrianC

jay1441 said:

"done so mortgage would be approved" eh?

Combining our salaries so the mortgage can be approved. Also some of my money is in the property so got to have my name on it. All a bit confusing.

What's confusing about the fact you are a joint borrower on that mortgage, and a joint owner of that property?

As I said earlier... I hope you receive your joint profit from the business you jointly run, and that you declare that on your income tax return - even if you then go on to gift your taxed income from it to the other joint owner.

macman

What is your share and equity in the BTL, and how big is the mortgage? Don't forget that you will be jointly and severally liable for the entire value of the mortgage, not just for the share of the BTL that you own. 
So, if the mortgage is, say, £200K and your share is 25%, your potentially owe £200K, not £50K. So that's £200K less that you could borrow for a second mortgage.

naeembhatti

jay1441 said:

Factors to consider:

1) My name is on a family members mortgage as part of a buy to let. Done so the mortgage would be approved.

2) My income £62k (before tax),Not many bills at all as live with family/ no car. Live in London.

3) Deposit saved £100k

Im looking to buy a house between £500K to £600k in London alone. My plan is to live upstairs with the downstairs on rent.

I realise the maximum I can barrow is 5x my salary £300k which is not enough.

Can anyone please suggest any ideas on how I could go about this with my factors into consideration? Interest only mortgage or a way into first time buyer help scheme?

Advice would be much appreciated.

Hi theartfullodger,,

Why not you think about holiday park homes, These home are helpful when planning your trip or holidays. You can also stay permanently in Residential Holiday Park Homes. I have meet lots of people in the uk, those are living permanently in holiday park homes depending on there family member etc.

yksi

As others mentioned you're liable for that mortgage your name is on. That means when lenders look at what you can afford, they will count the entire mortgage repayment on your expenses, because if your family member was suddenly unable to pay it tomorrow and your tenant paid no rent, you're on the hook for the whole repayment. They also count more than the actual repayment, because they run a "doomsday" calculation, let's say for argument's sake that interest rates went through the roof, they will stress-test whether you could afford that.

AdrianC hinted that you probably have a huge unpaid tax bill already hanging over your head too.

You're talking about more than half a million pounds in property happening here, get proper independent financial advice before you even think about trying for another mortgage.