Buying the house I rent

Discussion in 'General Property Investment Discussion' started by Paul Ransom, May 15, 2019.

  1. Paul Ransom

    Paul Ransom New Member


    I live and Glasgow and have the opportunity to buy the house that I currently rent. I can raise around 80% of the cost. Therefore I am looking for a way or investor to fund the last 20%. This would be for a 5 year period. After which I have a legacy second pension which matures and I will use it repay the investment. Obviously plus an agreed fee or interest. I am looking for around £50 - 60K

    Is this something that can be done or someone would be interested investing in?

    Thank you

  2. FWL

    FWL Member

    I assume from your post that you are not currently in employment? Otherwise surely a 20% mortgage would be the obvious route?

    There may well be private banks and niche lenders who would appreciate a legacy second pension and potentially agree to provide finance for the additional 20%. I would approach a mortgage broker in the first instance and explain your unique situation.
  3. Paul Ransom

    Paul Ransom New Member


    Thanks for your reply. Sorry I did not fully explain my situation. Yes I am employed full time. The 80% I can raise is around £50k equity from the sale of my last house and approximately a £200k mortgage in principal. I cannot access the pension until I am 55, though it is really frustrating seeing what is is worth and not knowing a way to legally borrow against it.

    Thanks for the link also.
  4. diyhelp

    diyhelp Active Member

    If you approach a mortgage broker you may well be able to find a mortgage lender who will take into account the security of your pension and potentially offer a 100% mortgage. This would probably be through a private bank but it is definitely worth checking out.
  5. Paul Ransom

    Paul Ransom New Member


    Thanks for the like and your interest. Please see below for some basic information about the house and area.

    The house is in the West End of Glasgow, with good transport links to the city centre and beyond. House prices in the area (post code G61) have steadily increased in value. There are a number of good primary and secondary schools in the area and you can be at Loch Lomond in lees than an hour drive!
    The house is a detached 3 bedroom bungalow. With living room, kitchen and separate dining room. The upstairs has been converted, with a small toilet. However this was done a number of years ago and we would be looking to upgrade this along with the rest of the house. The back garden is private and south facing.Also there is a off street parking and brick garage.

    If there is any more information you would like please let me know.

    Kind Regards

  6. I would certainly approach a mortgage broker for more info as the private bank option may well be open to you. You dont necessarily have the funds today but a secure pension which becomes available in 5 years is certainly something you could use.
  7. Longterminvestor

    Longterminvestor Administrator

    I am a little surprised that no bank will take you up on the additional funding requirements especially when you bear in mind your pension fund windfall due in the short term. Will your mortgage provider not increase the LTV bearing in mind the additional security you have?
  8. FWL

    FWL Member

    My experience suggests that going through a mortgage broker will open up a whole new world of funding opportunities via private banks and niche lenders. That is where I would go to now.
  9. Farm201

    Farm201 New Member

    I think that you should value mortgage broker you will be able to find a mortgage lender who will take into account the security of your pension. Private banks can value their income, with the difference that their interests are higher than those of a state bank
  10. Longterminvestor

    Longterminvestor Administrator

    I totally agree about private banks BUT you are not comparing like for like when suggesting rates are higher than traditional banks so that is a little misleading.
  11. Karen R

    Karen R New Member

    If you speak to a mortgage advisor they will have various options for you, I know a great mortgage advisor but cannot put you in touch with her as I do not believe we are allowed to do that on this forum are we?
  12. FWL

    FWL Member

    This seems like a special situation and something more appropriate for a mortgage adviser and possibly a private bank. Private banks tend to be more bespoke, arranging mortgage funding around your particular financial scenario.

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