Mortgage/buying advice
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 SullivannnCPFC  Romford, Essex 09 Aug 17 9.46am |
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All I'm 24 years of age and looking to buy a property around August of next year. A two bed flat in my area is looking around 220-270k. I have quite a good family life so not actually in a rush to leave home, however I am in a rush to get on the property ladder before prices go through the roof any further. Realistically, how easy is it to 'buy-to-let'. What are the costs involved, and is it possible to do it through an agent for the first year , whilst building a relationship with the tenants and if all is well cut out the middle man from the second year onwards? What predictions are there at the moment for houses prices (going up or down) with regards to Brexit. At the moment I'm a single man, earning £26k basic but with overtime, bonuses and premiums, my annual salary is about £40k, who's best to go to with regards of being offered a mortgage that takes overtime into consideration? If all goes to plan, I'd expect to have around 25k in the bank when I go to buy. Thanks in advance for any help, and see you all Saturday!
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| Part Time James 09 Aug 17 9.56am |
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Do you mean buy-to-let or part-buy part-rent? If the latter, my sister is in the process at the moment with her husband. It all seems a bit too good to be true. I'm guessing the downside is lack of ownership although I understand you can increase your contribution towards the ownership side of things as time elapses. However, she's getting a new build that's nearly as big as the house I've bought. She's getting it all kitted out to her requirements and paying a 5% deposit. Very nice, a house worth 350,000 vs mine which we paid 270,000 for (albeit it's worth a lot more now) and with virtually no deposit.
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| PaddyMcPaddy 09 Aug 17 11.39am |
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For a buy to let mortgage you usually need to put down a minimum of 25% so at the lower £220k mark you would need at least £55k deposit.
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| PaddyMcPaddy 09 Aug 17 11.42am |
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Originally posted by PaddyMcPaddy
For a buy to let mortgage you usually need to put down a minimum of 25% so at the lower £220k mark you would need at least £55k deposit. I should add that I am sure it varies from provider to provider I just haven't ever seen a buy to let offer at a 10% deposit rate.
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| Part Time James 09 Aug 17 11.53am |
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Originally posted by PaddyMcPaddy
I should add that I am sure it varies from provider to provider I just haven't ever seen a buy to let offer at a 10% deposit rate. I don't think he meant buy-to-let if you look at the context. Doesn't sound like he intends to live with his folks and become a landlord. Although, it's one way to make a lot of cash!
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| IMpalace London 09 Aug 17 12.02pm |
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Originally posted by SullivannnCPFC
All I'm 24 years of age and looking to buy a property around August of next year. A two bed flat in my area is looking around 220-270k. I have quite a good family life so not actually in a rush to leave home, however I am in a rush to get on the property ladder before prices go through the roof any further. Realistically, how easy is it to 'buy-to-let'. What are the costs involved, and is it possible to do it through an agent for the first year , whilst building a relationship with the tenants and if all is well cut out the middle man from the second year onwards? What predictions are there at the moment for houses prices (going up or down) with regards to Brexit. At the moment I'm a single man, earning £26k basic but with overtime, bonuses and premiums, my annual salary is about £40k, who's best to go to with regards of being offered a mortgage that takes overtime into consideration? If all goes to plan, I'd expect to have around 25k in the bank when I go to buy. Thanks in advance for any help, and see you all Saturday! Major issue is you will need more than a 10% deposit for a buy to let mortgage. It's worth googling mortgage comparison websites, input all the details you have put in above and it will tell you what the art of the possible is. Good luck!
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| Part Time James 09 Aug 17 12.03pm |
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Originally posted by Part Time James
I don't think he meant buy-to-let if you look at the context. Doesn't sound like he intends to live with his folks and become a landlord. Although, it's one way to make a lot of cash! I completely take it back. I think he did mean that. It's me that missed the context. I'll get back in my box.
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 becky over the moon 09 Aug 17 12.07pm |
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Originally posted by Part Time James
I don't think he meant buy-to-let if you look at the context. Doesn't sound like he intends to live with his folks and become a landlord. Although, it's one way to make a lot of cash! If he's not looking at buy to let, why would he mention agents and tenants in his post?
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Kermit8  Hevon 09 Aug 17 12.13pm |
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Kirstie and Phil advise that you have three months worth of rent set aside to cover gaps in letting. But then again she advises that you shouldn't have washing machines in the kitchen so what does she know? Some people have their living rooms and bedrooms in their kitchen Kirstie, and in London plenty have their kitchens and washing machines in their toilet. Next to the car.
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| Rudi Hedman Caterham 09 Aug 17 12.16pm |
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Originally posted by becky
If he's not looking at buy to let, why would he mention agents and tenants in his post? You're the boss here.
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| Part Time James 09 Aug 17 12.21pm |
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Originally posted by becky
If he's not looking at buy to let, why would he mention agents and tenants in his post? Hence my self-correction. Did it take you 4 minutes to type that or did you just not read it?
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| Rudi Hedman Caterham 09 Aug 17 12.23pm |
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Originally posted by Kermit8
Kirstie and Phil advise that you have three months worth of rent set aside to cover gaps in letting. But then again she advises that you shouldn't have washing machines in the kitchen so what does she know? Some people have their living rooms and bedrooms in their kitchen Kirstie, and in London plenty have their kitchens and washing machines in their toilet. Next to the car. 1) Governments and house building policies. 2) Rise in Immigration. Both major reasons and have been since the middle of the last decade in the middle of that housing boom. The OP is not the first youngster to want to go down the buy to let route and he won't be the last. The buy to letters fuel it and the youngsters want to get on it whilst the government have only just started to slow it down. If the OP wants more capital I suggest matched betting for a while. He'll have the other 10% or 15% in under 2 years, possibly 18 months or nearer 12. Actually sooner if he's saving at home. He could then save for his own home. One day we'll see him bare chested in a hot tub on channel 4 as the new property guru. Edited by Rudi Hedman (09 Aug 2017 12.26pm)
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