loans & mortgage help
Discussion
Seriously needing help here... im clueless about this stuff 
Girlfriend wants a buy to let mortgage,but no deposit saved up.
The flat is 55k ,so 25% deposit £13750 , so she wants to get a personal loan of £15k ( 'car' ? loan ) for the deposit then a remaining mortgage of £41250
She earns 32k per year and has 2 outstanding credit cards owing 2.6k paid off every month.
She has a credit score on experian of 831/1000 as she hasnt changed the electoral role,that wont change until december, and is looking for a 15k loan but doesnt want loads of credit checks done , is there a way to get a loan in principal on the assumption credit rating is ok ?
Can anyone help with some advice ??
Also.. what if she gets a standard mortgage and not a buy to let mortgage ( less % deposit ),then rents the house out ( she knows the tenant very well and there is NO chance of problems with them,plz assume this is gospel for this situation )
Can anyone please advise on what to do please.. were desperate !
Girlfriend wants a buy to let mortgage,but no deposit saved up.
The flat is 55k ,so 25% deposit £13750 , so she wants to get a personal loan of £15k ( 'car' ? loan ) for the deposit then a remaining mortgage of £41250
She earns 32k per year and has 2 outstanding credit cards owing 2.6k paid off every month.
She has a credit score on experian of 831/1000 as she hasnt changed the electoral role,that wont change until december, and is looking for a 15k loan but doesnt want loads of credit checks done , is there a way to get a loan in principal on the assumption credit rating is ok ?
Can anyone help with some advice ??
Also.. what if she gets a standard mortgage and not a buy to let mortgage ( less % deposit ),then rents the house out ( she knows the tenant very well and there is NO chance of problems with them,plz assume this is gospel for this situation )
Can anyone please advise on what to do please.. were desperate !
Sounds like a really bad plan to me.
Combined payments for the next 5 years (assuming 15k over 5 years as a personal loan) will be around £550 / month. Partially off-set by the rental income.
If mortgage rates rise, as predicted, it could be a fair bit more than that.
If she doesn't have her own mortgage at the moment, then the above will be taken into account when she does apply for one, plus the loan repayments for the deposit will be taken into account when applying for the mortgage.
If she does currently have a mortgage, then those payments, plus the loan payments will be taken into account when applying for the BTL mortgage, and on £32k she'll struggle to get it authorised, I'd have thought.
Combined payments for the next 5 years (assuming 15k over 5 years as a personal loan) will be around £550 / month. Partially off-set by the rental income.
If mortgage rates rise, as predicted, it could be a fair bit more than that.
If she doesn't have her own mortgage at the moment, then the above will be taken into account when she does apply for one, plus the loan repayments for the deposit will be taken into account when applying for the mortgage.
If she does currently have a mortgage, then those payments, plus the loan payments will be taken into account when applying for the BTL mortgage, and on £32k she'll struggle to get it authorised, I'd have thought.
She already has a load of debt, why does she want more?
Fast lane to fiscal nightmares IMO. Everyone else in the world is de-risking and she wants to leverage up more debt with housing indicators pointing to a shaky future etc.
Surely better to save, repay all her debt and get a nice health deposit for better times ahead. My 2p
Fast lane to fiscal nightmares IMO. Everyone else in the world is de-risking and she wants to leverage up more debt with housing indicators pointing to a shaky future etc.
Surely better to save, repay all her debt and get a nice health deposit for better times ahead. My 2p
Hi
you wont get it without telling massive porkies....
They will want a deposit as you state
They will value the place and probably knock off anything up to 20% as a safety net for themselves
Then they will want a repayment versus rent to be probably 1.5 times rent to repayment.
Probably wont give too much notice to how the deposits raised if the rest stacks up really weel
They will do a credit check .
Also what happens about the other expenses
ie safety checks gas and electric
decoration prior and after tennants
non paying tennants
periods of non rent
oh and agents fees (1 months rent to find one and anything between 10 and 20 % to manage ie tell you its going wrong)
I have 2 properties rented out but they one months rent on one pays both mortgages for 2 months .
you wont get it without telling massive porkies....
They will want a deposit as you state
They will value the place and probably knock off anything up to 20% as a safety net for themselves
Then they will want a repayment versus rent to be probably 1.5 times rent to repayment.
Probably wont give too much notice to how the deposits raised if the rest stacks up really weel
They will do a credit check .
Also what happens about the other expenses
ie safety checks gas and electric
decoration prior and after tennants
non paying tennants
periods of non rent
oh and agents fees (1 months rent to find one and anything between 10 and 20 % to manage ie tell you its going wrong)
I have 2 properties rented out but they one months rent on one pays both mortgages for 2 months .
dugless said:
Girlfriend wants a buy to let mortgage,but no deposit saved up.
The flat is 55k ,so 25% deposit £13750 , so she wants to get a personal loan of £15k ( 'car' ? loan ) for the deposit then a remaining mortgage of £41250
If she tells the lender she is getting the deposit from a loan they won't lend.The flat is 55k ,so 25% deposit £13750 , so she wants to get a personal loan of £15k ( 'car' ? loan ) for the deposit then a remaining mortgage of £41250
If she tells them she's saved the money, she's commiting Mortgage Fraud.
(I suspect very few people get prosecuted for Mortgage Fraud, however it is a criminal offence.)
Most of all, is she an FTB. Most BTL loans arent available to FTB's.
dugless said:
She has a credit score on experian of 831/1000 as she hasnt changed the electoral role,that wont change until december, and is looking for a 15k loan but doesnt want loads of credit checks done , is there a way to get a loan in principal on the assumption credit rating is ok ?
The electoral roll thing will cause her problems with lenders. They can't find her on the official records so will assume she has something to hide. why can't she go on it where she is now?As for not credit checking a loan application, you're kidding right?
dugless said:
Also.. what if she gets a standard mortgage and not a buy to let mortgage ( less % deposit ),then rents the house out
There are people who do this, however the point about the deposit still stands. She's borrowing 100% of the purchase price. That'll be pretty unpopular.The point about mortgage fraud stands too. She's buying a flat as a home with no intention of living in it. There are lenders who will allow this.
dugless said:
( she knows the tenant very well and there is NO chance of problems with them,plz assume this is gospel for this situation )
You can't say that. Plenty of BTL'ers have made this mistake.dugless said:
Can anyone please advise on what to do please.. were desperate !
At the risk of sounding unhelpful. Save a deposit.Gassing Station | Finance | Top of Page | What's New | My Stuff