First time buyer mortgage advice, help!
Discussion
Im 22 now and a couple of my mates have started getting properties, one is moving into his and the other renting out and staying at home, however the fact I spend all my money on cars and technically dont have much to show for it is starting to show so time for a sensible head to be put on.
Firstly I have no intentions of moving out of my parents house for a few years yet anyways so am looking for a property to rent out, fortunately property in the North East isnt overly expensive so thats one advantage.
However who do I go to for mortgage advice, an estate agent come mortgage advice centre like Your Move or go to my bank?
Also what type of mortgage do I have to get when renting property, I thought it was a buy to let mortgage but my mates just got a normal one and is going to rent the flat out?
Is getting a cheap property and going through a local council and getting DSS tenants in a good idea as its guaranteed income?
Any advice would be a massive help as im beyond confused!
Firstly I have no intentions of moving out of my parents house for a few years yet anyways so am looking for a property to rent out, fortunately property in the North East isnt overly expensive so thats one advantage.
However who do I go to for mortgage advice, an estate agent come mortgage advice centre like Your Move or go to my bank?
Also what type of mortgage do I have to get when renting property, I thought it was a buy to let mortgage but my mates just got a normal one and is going to rent the flat out?
Is getting a cheap property and going through a local council and getting DSS tenants in a good idea as its guaranteed income?
Any advice would be a massive help as im beyond confused!
I found www.1st-timebuyers.com a great help for first time buyer advice
after_shock said:
Im 22 now and a couple of my mates have started getting properties, one is moving into his and the other renting out and staying at home, however the fact I spend all my money on cars and technically dont have much to show for it is starting to show so time for a sensible head to be put on.
Firstly I have no intentions of moving out of my parents house for a few years yet anyways so am looking for a property to rent out, fortunately property in the North East isnt overly expensive so thats one advantage.
However who do I go to for mortgage advice, an estate agent come mortgage advice centre like Your Move or go to my bank?
Also what type of mortgage do I have to get when renting property, I thought it was a buy to let mortgage but my mates just got a normal one and is going to rent the flat out?
Is getting a cheap property and going through a local council and getting DSS tenants in a good idea as its guaranteed income?
Any advice would be a massive help as im beyond confused!
Firstly I have no intentions of moving out of my parents house for a few years yet anyways so am looking for a property to rent out, fortunately property in the North East isnt overly expensive so thats one advantage.
However who do I go to for mortgage advice, an estate agent come mortgage advice centre like Your Move or go to my bank?
Also what type of mortgage do I have to get when renting property, I thought it was a buy to let mortgage but my mates just got a normal one and is going to rent the flat out?
Is getting a cheap property and going through a local council and getting DSS tenants in a good idea as its guaranteed income?
Any advice would be a massive help as im beyond confused!
DSS is guranteed but agent letting might be better, so that when the DSS guys trash the place, the agent picks up the tab
Good to getone in a student town as students need places to live, Citizens advice bureau might have local contacts ?
get a buy to let mortage, doing a normal one might have uneed to lie on the form and not a good thing
Number one priority, talk to an IFA who knows their mortgages. Best to seek one out through recommendation rather than the phonebook too imho. Banks will only ever offer you their products, whether they are whats best for you or not. If a banks product is the best for you, an IFA will still get it at the same rate for you, but they will at least check the other products on the market for you.
Some repayment mortgages allow you to operate the property as a rental property. Not all do though, you need to check. Again, talk to an IFA, there is particular specifications that buy-to-lets need the property to meet. Some interest only mortgages will allow you to over pay which over time works off some of the capitol as well as just the interest. £10-20 a month is not a lot of rental income to sacrifice for a better return when you sell the place and a bit more security you couldnt end up in negative equity should prices fall.
Be aware there are multiple occupancy laws in place for properties with more than 2 tennants in them which can be a nuisance.
As above, the DSS route is tried and tested by many, but best figuring out some insurance if going down this route and/or find a property thats a shit hole and you rent it for a few years to get the capitol together to renovate it before punting.
Some repayment mortgages allow you to operate the property as a rental property. Not all do though, you need to check. Again, talk to an IFA, there is particular specifications that buy-to-lets need the property to meet. Some interest only mortgages will allow you to over pay which over time works off some of the capitol as well as just the interest. £10-20 a month is not a lot of rental income to sacrifice for a better return when you sell the place and a bit more security you couldnt end up in negative equity should prices fall.
Be aware there are multiple occupancy laws in place for properties with more than 2 tennants in them which can be a nuisance.
As above, the DSS route is tried and tested by many, but best figuring out some insurance if going down this route and/or find a property thats a shit hole and you rent it for a few years to get the capitol together to renovate it before punting.
Hi,
Did the same when I was your age, got out of it after 5 years, have rented to students who wrecked the house, have rented to Polish family who were great, know people who rent to DSS (guaranteed rent etc...) Its up to you who you rent to thats not your imediate problem.
Check out www.landlordtrader.co.uk/ not a bad site and speak to a mortgage advisor. As has been mentioned your going to need a deposit, can't get 100% buy to let. And although you can rent a property on a normal mortgage they will only let you do it for so long (Well they only let me do it for 6 months). A lot of landlords buy proprty on Interest only buy to let mortgages, ok your not paying off the mortgage but you have a foot on the ladder and property increases in value (normally).
Ive always used a letting agent hastle free, ok they charge you a percentage, but normally earn their fee by taking all the hastle out of it, at the end of the day I didn't want to have to take a tennant who didn't pay through the courts to get them evicted.
Its all good fun. I didn't regret it. Good luck.
Did the same when I was your age, got out of it after 5 years, have rented to students who wrecked the house, have rented to Polish family who were great, know people who rent to DSS (guaranteed rent etc...) Its up to you who you rent to thats not your imediate problem.
Check out www.landlordtrader.co.uk/ not a bad site and speak to a mortgage advisor. As has been mentioned your going to need a deposit, can't get 100% buy to let. And although you can rent a property on a normal mortgage they will only let you do it for so long (Well they only let me do it for 6 months). A lot of landlords buy proprty on Interest only buy to let mortgages, ok your not paying off the mortgage but you have a foot on the ladder and property increases in value (normally).
Ive always used a letting agent hastle free, ok they charge you a percentage, but normally earn their fee by taking all the hastle out of it, at the end of the day I didn't want to have to take a tennant who didn't pay through the courts to get them evicted.
Its all good fun. I didn't regret it. Good luck.
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