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Advice on a Buy to Let Mortgage

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  • Advice on a Buy to Let Mortgage

    Hello Guys,

    I have been looking in to mortgages and buy-to-let mortgages and interested in purchasing a house in Lincolnshire for around £73000.

    I have a Loan debt of around £9000 which I pay back monthly, I have an interest-free OD of around £3000. I also have around £8000 available for a deposit, £9000-£10000 at a push.

    Now the hosue, me and my partner currently rent a room seperately paying £300 and £150. I pay the lowest rent and can afford alot more considering I also have £75/month coming directly from my bank account into an e-ISA and have money left over. My contract from my previous accomodation was £220/month.

    We want to let out the other rooms in the house for approximately £250/month which would obviously take alot of burden of our finances. Its between a 5bedroom groundfloor flat in a 2storey house and a 4bedroom house.

    Me and my partner are 21 and 20 and both full time worker. So firstly, do lenders look in to the terms of our employment?
    I ask this because my minimum guaranteed hours contract is only an 8hr/week contract, but I work between 30-40hours/week at my job earning fortnightly between £348 and £464 so about 8.4K/annum.
    My partner being on a minimum guaranteed 20hr/week contract but works 25-30hrs per week. So earns monthly between £460 and £570, therefore around £6000/year.

    Now, I however, am about to make a career change - I will be doing my current job at my contracted of eight hours (not because they are cutting hours but because I want a little change), I am going to be a taxi driver - with £600 minimum guaranteed earning per week so after some quick figures should yield atleast £200 of which is profit per week (I where possible try to work with worst case scenarios when it comes to my personal finances so it may be more many weeks - now this is after the income even pays of the loan payments each month).

    The mortgage and bills/month alone would be approximately £750. Alone we could afford this - we wouldn't have loads of disposable income left. Combined around £1250/month.
    A single room being rented brings the income to at least £1500.

    We are not after a home for us both together, more of an investment. We both enjoy living in house shares with other professionals (professionals mandatory).

    Now considering our situation what kind of advice could you offer? Not sure exactly what I am after by posting this.. something on the lines of what options may be available or what I could do to strengthen my case for a mortgage in such times where credit is getting harder...

    Would it make a difference if I had found a tennant who has already signed a conditional contract for a room...
    Would I apply for personal first buyer mortgage so levy the increase in deposit required or would banks have none of that?...

  • #2
    Wow! Thats a lot of information and not all of it completely clear. So in order to ofer an opinion I will need to clarify a few bits. So please correct me where I am wrong.

    Firstly, are you planning to buy a 5 bed house, with you and your partner each living in one room, therefore leaving 3 rooms to rent out?

    Secondly, have you found this property for £73k?

    Thirdly, you currently earn between you about £14k?

    And finally, your total debts are approx £9k?

    Are these details correct? Or have I got toally confused here?

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    • #3
      lol - I know its alot of information, figured any advice worth receiving would be from people knowing the whole situation.

      Your assumptions are correct.

      The loan repayments will be offset again takings with my new job as a taxi driver so during job change my disposable income will not decrease - if anything increase.

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