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    • KP24
    • By KP24 16th Oct 16, 8:48 PM
    • 16Posts
    • 1Thanks
    'Low' deposit but high monthly income - options
    • #1
    • 16th Oct 16, 8:48 PM
    'Low' deposit but high monthly income - options 16th Oct 16 at 8:48 PM
    Hi all,

    Apologies if this is in the wrong forum but I am looking for some help...

    We are looking to buy a new house next year and have been working out budget etc. we both have full time jobs and I own 2 buy to let properties. We currently live with parents.

    The property we are looking to buy to live in will cost around 500k. We have around 130k for a deposit meaning we would need a mortgage of 370k.

    We worked out our monthly finances and even with a mortgage of around 1200 a month and larger bills, with our joint income from employment and rental income, we are still likely to have around 800 spare a month.

    What are people's opinions about this? Should we wait and save for a bigger deposit or go with what we have and expect to pay for the huge mortgage for a very long time? Also, what % of savings do you think should go towards the deposit? With our 130k deposit, we will have around 30k left.

    Thanks in advance
Page 1
    • ACG
    • By ACG 16th Oct 16, 8:51 PM
    • 16,690 Posts
    • 8,674 Thanks
    • #2
    • 16th Oct 16, 8:51 PM
    • #2
    • 16th Oct 16, 8:51 PM
    Do you know that stamp duty will be 30k? If you sell the BTLs the stamp duty will be 15k.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • Thrugelmir
    • By Thrugelmir 16th Oct 16, 9:41 PM
    • 58,169 Posts
    • 51,523 Thanks
    • #3
    • 16th Oct 16, 9:41 PM
    • #3
    • 16th Oct 16, 9:41 PM
    BTL's will impact affordability. Lenders will use what if scenarios, i.e. the properties rather than produce income are a drain on income. For the rental income to be considered the properties will need to be unencumbered i.e. mortgage free.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
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