Advise on best mortgage for FTB

maynard_2

Hi Guys,

I am currently looking to get on the property ladder and have got a AIP on the one account at 6.8% SVR.

I've put in an offer on a place and expect to pay £170k for it. I have got a 10% deposit.

I met with another mortgage advisor this week and he recommended that I get a 5year fixed with Nationwide at 6.05% - this would mean I could save approximately £80 pcm on interest. My only issue with this is that I am going to need to do approximately £20k worth of work on the new house and the benefit of using the one account is that I can treat it like an overdraft.

However, I'm now thinking that I might be better off getting a 5 year fixed rate mortgage and buying the materials for the renovation works on interest free credit cards and moving the debt about as the interest free periods come to an end - paying off only the monthly minimum.

I'm just really looking for some feedback/advise on other mortgage products that suit my situation. Any suggestions other than the one account and nationwide?

I'm actually going to rent the new house out once I have completed the works as I currently rent a house from my parents (they live abroad). Will I have a problem with Nationwide/another lender considering I'm not getting a BTL mortgage - I was planning on telling the mortgage company that I am going abroad to work - is it possible I could be penalised for this?

Thanks,

John

sammyjammy

If it was me and I was renting my parents house longterm I'd keep my money in my pocket for a good while yet, take advantage of your situation and increase your deposit further, I think you are considering a risky situation, what will you do if you cannot rent the house once you've completed the work?

maynard_2

sammyjammy wrote: »

If it was me and I was renting my parents house longterm I'd keep my money in my pocket for a good while yet, take advantage of your situation and increase your deposit further, I think you are considering a risky situation, what will you do if you cannot rent the house once you've completed the work?

Luckily im in quite a good position whereby I could afford to finance the mortgage payments whether if I couldn't get someone in right away. However, it appears that the rental market is going strong and its a popular area.

The particular property I have made an offer needs £15k to finish it off (vendors cant affod to do it - hence the sale) - I estimate at today's value it would be worth £230k when finished (based on houses of similar nature in that area).

In short, this particular property is a great buy - even in the current market. Plus I'm looking at it as a long term investment.

Thanks for the feedback.