How to Purchase x2 Houses with Low Income

Reusability

Hi Everyone,

First time poster. Fan of M.L from family watching his content since way back when.

Current Situation: I currently acquire PROPERTY_1. Purchased for £285,000 and now worth £300,000 and have put £100,000 deposit in. Therefore, mortgage for amount of £185,000 (Barclays).

Goal: Another PROPERTY_2 is available at £315,000 that I would like to acquire as well as keep PROPERTY_1. Purchase as main residence.

Personal Info:
- Combined Salary: 46,500 - Permanent jobs.
- Bonus Salary: 13,500 - Only just started to receive this (1m ago). Self employed.
- Outstanding Mortgage Remaining on PROPERTY_1: £185,000

Possible Options:
- Credit Cards under Personal.
- Credit Cards under Business.
- Proportunity (proportunity<dot>com) or alternative loan company.
- Cash Out Refinance (American Term)
- Home Equity Loans (barclays<dot>co<dot>uk/loans/what-are-home-equity-loans)

Note that as soon as we purchase PROPERTY_2 then our salary would increase by £13,500 as live-in-landlord. Currently doing this on PROPERTY_1.

Required Info: How do I maximise the amount of money I can acquire through various methods listed in possible options (and other ways not listed ), so that I am financially eligible to purchase PROPERTY_2 without selling PROPERTY_1.

If anyone is knowledgeable on mortgages, second house mortgages, home equity loans, etc then please comment. I could use all the info.

Thank you.

spoovy

Presumably you couldn't live in both at the same time, so you'd need one or the other to be a buy-to-let mortgage, and you'd need to become a "proper" landlord. I would think this would be the main jumping-off point for your research.

Brie

Are you suggesting using a credit card to buy a property?  Doesn't seem feasible to me.

Emmia

Also borrowing on your credit cards, will be counted against the amount you can borrow for your property - it will be a debt

PRAISETHESUN

I suspect you'll fail on mortgage affordability long before you get anywhere near trying to figure out the logistics of how you'll be a live in landlord at two properties...

Also to keep in mind that the rental income isn't guaranteed. You might get rubbish tenants who don't pay rent, completely trash the place, and then drag you through the courts to get them evicted. How would you cope with the costs of two mortgages in that situation?

Martico

On the face of it, you're asking for half a million in debt financing on a salary of <50,000. That's taking over-leveraging to a whole new level

DE_612183

what deposit have you got for property2?

at a bare minimum you'd need at least £30k + fees and stamp ( 2nd home is high rate ) - that's got to be £11-12k

Grizebeck

Brie said:

Are you suggesting using a credit card to buy a property?  Doesn't seem feasible to me.

I did that once in a fashion many years ago . Complicated to explain but I did it...

Brie

Grizebeck said:

Brie said:

Are you suggesting using a credit card to buy a property?  Doesn't seem feasible to me.

I did that once in a fashion many years ago . Complicated to explain but I did it...

I've no doubt it's been possible in the past - just that it seems much less likely now.  I put quite a bit of my mortgage on my cards via stoozing when things were much looser.

Reusability

spoovy said:

Presumably you couldn't live in both at the same time, so you'd need one or the other to be a buy-to-let mortgage, and you'd need to become a "proper" landlord. I would think this would be the main jumping-off point for your research.

I don't see why we couldn't live in both at the same time. Even if we owned both properties with no lodgers, we can still pay off the mortgage on low salary as we have no other expenditures.

Reusability

Brie said:

Are you suggesting using a credit card to buy a property?  Doesn't seem feasible to me.

In order to gather funds for deposit. Under a business credit card, the credit score would be under the business and wouldn't affect personal credit scores.