Working away - buying first home to stay in through week

willow2022

Hubby commutes around an hour to work each way and with rising fuel costs is costing £400 a month. 

We currently live in beautiful rented accommodation and although we have savings we cannot afford to buy a similar property and don’t want to leave the area we are in (children settled, my business is here)

We have discussed the option of us buying a cheaper property (around 70-80k) where hubby works and him living in it through the week. The mortgage repayments would actually be less than he is paying in fuel (I’m aware there are obviously other costs such as bills but we are looking at this as an investment as interest on savings is limited anyway) it also has added benefits that he can work longer hours, is closer if he needs to go in unexpectedly etc. 

How would this work in terms of lenders and mortgages? Is it something they are likely to allow us to do even though it’s not our permanent residence? We can prove we have enough excess income to cover the mortgage and bills etc. 

To add, we are both self employed but hubby will be working in that location for at least the next three years (has contracts to prove) and probably longer term than that. One additional option is that he also rents out a room in the property to other people he works with who currently commute. If we did that would we need a buy to let mortgage? (we are happy not to do this if it makes things more complex as I understand it’s difficult to get a buy to let without first owning your own home but on the other hand having a lodger might prove we can cover the extra payments easier)

Also, I don’t know if it will have an impact but to add, we live in Scotland but would be looking at buying in England. 

Gycraig

You wouldn’t need a btl mortgage as it would be classed as a lodger not a tenant. 

Sounds a decent idea however do you really not wanna see your partner Monday to friday every week 

MEM62

willow2022 said:

We have discussed the option of us buying a cheaper property (around 70-80k) where hubby works and him living in it through the week. The mortgage repayments would actually be less than he is paying in fuel (I’m aware there are obviously other costs such as bills but we are looking at this as an investment as interest on savings is limited anyway) it also has added benefits that he can work longer hours, is closer if he needs to go in unexpectedly etc. 

Sounds like a plan.  

willow2022 said:

How would this work in terms of lenders and mortgages? Is it something they are likely to allow us to do even though it’s not our permanent residence? 

But it will be his primary, permanent residence as he will be spending more time there than at your rented residence.  What makes you think that it would not be?  Besides, this will be a requirement if you are going for a residential mortgage.    

SuseOrm

 We did this in 2011 unfortunately it ended with my husband finding himself a new girlfriend Monday to Friday as well and we got divorced in 2013 

Gycraig

SuseOrm said:

 We did this in 2011 unfortunately it ended with my husband finding himself a new girlfriend Monday to Friday as well and we got divorced in 2013 

Would need a lot of trust to even consider doing this, he could see a hidden girlfriend far more than he would see his real wife. 

SavingPennies_2

Surely £400 a month and an hour commute (not great but actually that bad) is worth the price of spending your life with your husband (and vice versa) and not just the weekends - at which point he will still have some commute and petrol costs? What is it you want to achieve and start from there?... are you looking at this as as an investment / something to have as a BTL in the future? There will be financial implications if you later want to buy your own second home. I'm sure youve already considered this but is there any option for him to wfh a day or to a week? 

user1977

MEM62 said:

willow2022 said:

We have discussed the option of us buying a cheaper property (around 70-80k) where hubby works and him living in it through the week. The mortgage repayments would actually be less than he is paying in fuel (I’m aware there are obviously other costs such as bills but we are looking at this as an investment as interest on savings is limited anyway) it also has added benefits that he can work longer hours, is closer if he needs to go in unexpectedly etc. 

Sounds like a plan.  

willow2022 said:

How would this work in terms of lenders and mortgages? Is it something they are likely to allow us to do even though it’s not our permanent residence? 

But it will be his primary, permanent residence as he will be spending more time there than at your rented residence.  What makes you think that it would not be?

Because the number of days spent there isn't the only consideration. You can retain a primary residence even if you're spending Mon-Fri staying in digs for work. You need to look at other things too - where does the rest of his usual household stay, where is most of his stuff kept, where does his mail go, where does he vote, where do the kids go to school, where does he spend any days off work, etc. It might be a fine distinction depending on the facts.

Sweetnut

If he's communting by car it sounds like you need an electric vehicle?

The cost per day for a 100 mile commute would be around £2 for me in my electric car (£40 a month)  - appreciate electric prices are going up but even if it doubled to £4 that would be £80 a month.

gingercordial

willow2022 said:

Also, I don’t know if it will have an impact but to add, we live in Scotland but would be looking at buying in England. 

This is far from the mortgage/home-buying part of the question, but bear in mind there are different income tax rates for Scotland versus England, and if he stays in both he will have to convince HMRC of which is his "main home" for those purposes too (and the tests/answer may not be the same for this as for other matters).  See the example here:

https://www.gov.uk/guidance/work-out-if-youll-pay-the-scottish-rate-of-income-tax#if-you-have-more-than-one-home-at-the-same-time

newsgroupmonkey_

Sweetnut said:

If he's communting by car it sounds like you need an electric vehicle?

The cost per day for a 100 mile commute would be around £2 for me in my electric car (£40 a month)  - appreciate electric prices are going up but even if it doubled to £4 that would be £80 a month.

What's the lease on your electric vehicle out of interest?

I'm going to hazard a guess that said hours commute is 100 miles a day, 25k a year (taking into account husband doesn't use it at weekends) so 25k.

Cheapest EV I can find based on that mileage is an e208 for just short of £500 a month on a 9+36 (so £4.5k deposit).

Alternatively, it's £28k OTR. After 4 years, it'll be worthless with 100k on the clock.

SallyDucati

The mortgage may be cheaper than the £400/month on fuel but also (somewhat finger in the air figures) -

Council Tax - assuming Band A with 25% single person discount - £85
Gas/Electric/Water - £60 (Ok this might be quite low!)
Still travelling back at weekends so 1/5 of the £400 - £80
Contents/Buildings Insurance - £10
 
That would leave £165/month for mortgage and will be less if a flat due to service charges.

And you'll have to furnish it, carry out any repairs needed etc.

Sounds like a good idea in principle but have you fully thought it through?