Getting a Mortage

Soldato
Joined
28 Mar 2005
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i have noticed there will be a property coming up very soon that is going to be an awsome inverst buy.

i currently work in an estate agent's so know that it will be hard for me to get a mortage as i am a first time buyer,

i would be buying to let, and the property is £85,000 but is well worth it, the rent would be roughly £390/£400 a month.

problem being i am only 18 its going to be hard work getting one.

where would i try? and what are the chances?
 
Associate
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16 Oct 2004
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As long as the lender thinks that the rent will cover the mortgage you won’t have a problem.

I got my buy to let mortgage for £80K when I was only earning about £16K a year. Some lenders do want large deposits (25%) for buy to let so I hope you’ve got some cash spare
 
Associate
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I think getting a 85k mortage at 18 is going to be a big ask, unless your on a seriously good salary. There gonna want a monster deposit i'd of thought. Then there is all the legal fee's :( Have you considered maybe going into this with a friend even a parent.
 
Man of Honour
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I would advise against buying to let at the moment, you're going to be very lucky if you can break even on that unless you've got a substatianal deposit (say £30k), especially as BTL mortgages generally have a much higher APR than home mortgages (and don't even think about lying to the bank about your intended purpose)

If you really want to do it, speak to an IFA, but to me, I'd guess your sums won't actually add up at the end of it, especially if you're on less than £16k a year.
 
Soldato
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i was told by someone that most lenders will let you "buy to let" if the rent is at least 30% more than cost of the mortgage

ie,

monthly mortgage - £700, then the monthly rent will have to be at least £1,000
 
Man of Honour
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Stinky said:
well i dont earn £16,000 a year. i'm in devon. your lucky to get that when your 30odd lol

Don't be daft I'm only on just under that and its a student placement. Whilst Devon is hardly London it's frankly inaccurate to say you are lucky to get £16k at 30.
 
Soldato
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If you currently work in an estate agency i would suggest asking some of your colleagues.

However, if you currently earn less than 16k you have between zero and no chance of getting a buy to let mortgage to cover 85k.

If you want to invest in property it is probably a better move to get a mortgage on a property you can afford. Banks will lend around 4 times your salary depending on your circumstances...sometimes a bit more. Do it up a bit and sell it on. That way you have no hassle of dealing with tennants and make a tidy profit. Plus it is an excuse to watch Sarah Beeny's ubernorks on property ladder for rennovation tips :)
 

Maz

Maz

Soldato
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Newcastle.
Get a self cert Mortgage.

I needed to borrow £150k for my first property, and the only way I could borrow that much at the age of 19 (22 now) was by going self cert.
 
Soldato
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I would have thought that working in a estate agents would make you ideally placed to ask for advice from collegues or get a decent deal from which ever lender is closely aligned to your office.
 
Associate
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£400 rent on a property worth 85k .. an awesome investment?

the property market has topped!

18 year olds are looking to get in on the easy MonEyZ :D :D it must be a top! IT HAS TO BE! :D
 
Don
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Youstolemyname said:
IfHowever, if you currently earn less than 16k you have between zero and no chance of getting a buy to let mortgage to cover 85k.
not true, my Dad is in the process of transfering one of his houses over to my brother, as a buy to let (who doesn't have a full-time job, just temping atm) and the only thing the bank were interested in was, as mentioned earlier, that the rental income was 130% of the mortgage.
 
Last edited:
Soldato
Joined
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2,674
Maz said:
Get a self cert Mortgage.

I needed to borrow £150k for my first property, and the only way I could borrow that much at the age of 19 (22 now) was by going self cert.

You lied on the mortgage application form then?
 

Maz

Maz

Soldato
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Newcastle.
Alibaba99 said:
You lied on the mortgage application form then?

No I didn't.

I just didn't have to prove my income, which I couldn't do being in a job which is majorly made up of commision.

I could afford the repayments, and I've been making the repayments for over 3 years.

Which is what they were more interested in knowing.
 
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wesley said:
i was told by someone that most lenders will let you "buy to let" if the rent is at least 30% more than cost of the mortgage

ie,

monthly mortgage - £700, then the monthly rent will have to be at least £1,000

You might wish to reassess your arithmetic.
 

Dup

Dup

Soldato
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10 Mar 2006
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East Lancs
My girlfriend and I have just signed on the dotted link for a 100% morgage for £76k. Property has nicely done kitchen and bathroom already which have never been used. It also has two bedrooms and a small study.

They're not huge rooms, but it's an investment and there's just two of us for now. If we tidied up the other rooms over a couple of years we could find something closer to an area we're used to (born and bred country folks), and afford a decent deposit off the equity.

It's not all cheap and easy going mind. There's lots of up-front fees as you would know, but out Mortgage will cost about the same it would rent a similar property. So now we'll pay the same and have our freedom to paint it wee wee yellow or flourescent pink etc :D

Our salaries combined add up to £22k at the moment, but my girlfriends will be going up soon, she has to finish her NVQ so we can only struggle until shes finishes that. Shes got a position lined up already if she wants it.

My advice would be find someone else to buy with, a lot of first timers are doing the same these days, as its nigh impossible to live otherwise. We've pencilled in upto a worst case scenario of £400 a month for all bills plus the £350 I pay out for my car insurance etc each month.

£80k at 100% with Northern Rock is about £471 a month, they give 4x sallary multiples + 100% mortgages, but they tnd to run about 4k of that as an unsecured loan alongside the mortgage due to the risk, so you would need to remember to pay some of it off if you wish to ditch them after their tied in period which for us is 2 years.

It's a lot to think about and a potential migrain, but I'm looking forward to getting into my new place.
 
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