Buying a house for the first time, what to know?

[Z064life]

Hi


I am 26 yrs old and in the next 1 or 2 years (at which point I should have saved 60k-70k for a mortgage), I am looking to....get a mortgage (Buy-to-let).


This will be my first house etc (But not to live in hence BTL). What advice would there be for getting a house to invest in? What should I know about the minefield that is the property ladder?


I live with my parents and pay housekeeping etc (as I work full time, hence the savings, I would consider living out when I get married) and of course my parents have brought mortgages so have the experience and knowledge and know what it is like to get one, but I am interested in a wide field of opinions.

PS my aim in life is to get said mortgage and then to seriously consider to get the car I have always wanted (Z06 or GT-R).



Thanks

[Sarnie]

Expect lots of "Your 26, buy a house and move out of home" responses

[Grandad Gaz]

Sarnie said:

Expect lots of "Your 26, buy a house and move out of home" responses

Indeed!

Why would you not want to move out if you can afford your own place??

Sorry, I know it's not much help

[Z064life]

I thought I'd get those responses, it's fine....



I want to have my own house and live there with my partner, not on my own. Also, the cost of paying the mortgage etc would be significant (even if I am in a skilled job earning decent money). Till then, house = money making oppurtunity.

[randlemarcus]

Maybe your idea about living in a house with your partner also appeals to your parents?

Move out,let them do the nasty in the kitchen again.

[jonny70]

Z064life said:

I thought I'd get those responses, it's fine....



Also, the cost of paying the mortgage etc would be significant (even if I am in a skilled job earning decent money). Till then, house = money making oppurtunity.

So how do you plan on getting a buy to let? what if you dont get a tenant straight away or the property stays vacant?

You missed the bandwagon to get into buy to let by about 10 years. There is money to be made , but it is along term thing at least 10 years.

[Sarnie]

The vast majority of BTL lenders will only lend to people who currently have a residential mortgage.

[SAAB93AERO]

Sarnie said:

The vast majority of BTL lenders will only lend to people who currently have a residential mortgage.

Interesting, why is that I was thinking of doing the same thing.

[Sarnie]

SAAB93AERO said:

Interesting, why is that I was thinking of doing the same thing.

Because this would make you a First Time Buyer AND a First Time Landlord which is a big risk as you have no track record of maintaining a mortgage or managing a rental property.

There are lenders who will do it, but the fee's and rates can be eye watering.

[SAAB93AERO]

Sarnie said:

Because this would make you a First Time Buyer AND a First Time Landlord which is a big risk as you have no track record of maintaining a mortgage or managing a rental property.

There are lenders who will do it, but the fee's and rates can be eye watering.

I thought with a decent deposit and good credit rating I would have have been able to get one. Looks like I may have to rethink my plans.

[Sarnie]

SAAB93AERO said:

I thought with a decent deposit and good credit rating I would have have been able to get one. Looks like I may have to rethink my plans.

As I said, it can be done, but it won't be with any of the prime lenders and it will be reflected in the fee's and rates offered.

[e8_pack]

Live there and get a lodger, maybe a couple of mates you know.

I wouldn't be looking at houses to rent out yet, i'm looking to buy and houses I have been watching are dropping. One dropped 10k in last few Weeks, another down 17k, one I looked at had dropped 75k but I don't know when it was first advertised. I have also noticed them coming off the market then going back on with other agents. Either way, hold on to your cash.