What to do with a 160k mortgage!

Discussion in 'General Property Investment Discussion' started by louRudd, Jun 2, 2019.

  1. louRudd

    louRudd New Member

    Hi guys.

    I am desperate to buy a property and get on the property ladder. I was looking to move out of London to Hastings and I found some good properties within my budget of 160k. (I have a mortgage offer in principle from Halifax)

    Sadly, due to a work issue, I am no longer going to be able to move out of London and obviously cannot afford anything in the city within my budget. So i'll have to continue renting for a bit longer. However, I still have my mortgage offer and my deposit saved, and so i still want to go ahead and buy something even though my situation will prevent me from enjoying the property myself.

    Just thought i'd put it out there and ask people what they would do in my situation?

    For example, I've viewed properties in Hastings that have happy tenants in them. I could buy a place like this and then i'd be on the ladder, have rent coming in, and then in the future i could move in to the property myself if my situation changes. Or, if i'm going down this buy-to-let route, then is there a better area of the UK I could buy where i'm more likely to see an appreciation in value? Or is there something better i should do with my money?!

    Any advice would be really appreciated! Thanks!
  2. realdeals

    realdeals Active Member

    I would check the situation with your mortgage provider as I dont think the original offer will stand - although I could be wrong.
  3. diyhelp

    diyhelp Active Member

    I would not committ to anything until you know for certain that the finance is still available - I would presume your initial application was for a homeowners mortgage?
  4. I think from memory that the interest rate applicable to a BTL mortgage is higher than a standard mortgage? Worth checking out as I am not sure you could simply use these funds for BTL investment.
  5. Karen R

    Karen R New Member

    You will not be able to use a residential owner occupied mortgage to buy a property you intend to let and not reside in yourself. As you are currently not a homeowner the buy to let mortgage options open to you may not compete with the rates and terms you have been offered by halifax but it may still be a good option. If you have a deposit and can buy a property to let, usually your earned income will also need to be considered in the app process but as long as the rental income covers 125% of the mortgage repayments then you should be able to obtain a BTL mortgage. If you buy somewhere that is being improved (ie: Leeds, Liverpool, Birmingham, etc) not only will you rent it easily (you may even be able to buy with a tenant already in place) but as the area is improved the property value will likely increase so even if you then decide to sell it in a few years to release equity or uplift to use towards a house you want to buy to live in, that will be an option. We deal with many people that started in your position. some now own numerous BTL properties and still choose to rent, some now own their own home as well and some only own a home now having sold their investment properties. It is really personal choice.

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