M4tt_Envoy
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Registered: 26th Feb 06
Location: Swindon
User status: Offline
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I am looking into the possibility of buying a house 50/50 with a friend, where we both pay half the mortgage but i live there and pay the bills etc. (with the idea we sell in a couple of years time making a tidy profit)
Just need a few questions answering
What are the first steps, obviously i need to see a mortgage adviser, is the best place to goto first the bank i have my current account with? (HSBC)
Is it a good idea to buy a house this way?
What kind of legal fees am i looking on a £150,000 house? (75000/75000)
has anyone else got a 75000k mortgage on a 16,000k salary??
Thanks
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Fee
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Registered: 16th Nov 05
Location: With AK
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best to see an independant mortgage advisor....your bank may not offer the best rate for your circumstances.
Some solicitors offer free mortgage advice, so it may be an idea to find a solicitor first and see if they can do it for you as well.
Legal fees depend on the solicitor, but I would think you are looking at around £600-700.
Then there's registration dues (approx £250) and Stamp Duty (1% of price if you're buying somewhere between £125,000 and £250,000)
Is your friend happy to pay half the mortage but not live there? seems strange...what would he be getting out of it?
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topshot_2k
Banned
Registered: 1st Dec 03
Location: Northampton Drives: Pug GTi-6
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you will stuggle to get 75k on 16k salary and afford it.
Fees as said, Then you need to pay for a report £200-£300
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whitter45
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Registered: 15th Nov 02
Location: Norton
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quote:
Originally posted by topshot_2k
you will stuggle to get 75k on 16k salary and afford it.
Fees as said, Then you need to pay for a report £200-£300
depemds if he has not other debts etc he could possibly get 80k
thing is it will be different though as the mortage will be joint so it will be yours and your friends slary put together and you may not be able to lend as much
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Ally
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Registered: 2nd Jul 03
Location: Pontypool Drives: a Skoda
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I have 67k on 16k, £300 pcm interest only or £400 repayment so it can be done
Use the mortgage calculator on the useful links thread at the top of house day forum to work out repayments on a 75k mortgage
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M4tt_Envoy
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Registered: 26th Feb 06
Location: Swindon
User status: Offline
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quote:
Originally posted by Fee
best to see an independant mortgage advisor....your bank may not offer the best rate for your circumstances.
Some solicitors offer free mortgage advice, so it may be an idea to find a solicitor first and see if they can do it for you as well.
Legal fees depend on the solicitor, but I would think you are looking at around £600-700.
Then there's registration dues (approx £250) and Stamp Duty (1% of price if you're buying somewhere between £125,000 and £250,000)
Is your friend happy to pay half the mortage but not live there? seems strange...what would he be getting out of it?
he has his own house (mortgage paid fully) and family and just looking for an investment, obviously if the house prices do rise 10% over the next couple of years then he's made 7,500 etc (thats the thinking behind it)
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topshot_2k
Banned
Registered: 1st Dec 03
Location: Northampton Drives: Pug GTi-6
User status: Offline
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quote:
Originally posted by Ally
I have 67k on 16k, £300 pcm interest only or £400 repayment so it can be done
Use the mortgage calculator on the useful links thread at the top of house day forum to work out repayments on a 75k mortgage
16k a year is what just over £1000 per month after tax?
less £400 mortgage leaves £600 for the month!!! tight but Could be done if you manage your money
[Edited on 01-04-2007 by topshot_2k]
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Ally
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Registered: 2nd Jul 03
Location: Pontypool Drives: a Skoda
User status: Offline
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quote:
Originally posted by topshot_2k
16k a year is what just over £1000 per month after tax?
less £400 mortgage leaves £600 for the month!!! tight but Could be done if you manage your money
£300 mortgage, leaving £700 - plenty of money!
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topshot_2k
Banned
Registered: 1st Dec 03
Location: Northampton Drives: Pug GTi-6
User status: Offline
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whitter45
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Registered: 15th Nov 02
Location: Norton
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I was going to say 400 for a 75K mortgage sounds very high
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Jules S
Premium Member
Registered: 24th Dec 03
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quote:
Originally posted by whitter45
I was going to say 400 for a 75K mortgage sounds very high
I dunno about that 
There again, only £700 a month would see me eating a staple diet of beans on toast without beer 
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Kerry
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Registered: 5th Oct 01
Location: Norwich
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the monthly payment is going to be dependant on the term of the mortgage, the interest rate and whether you take an interest only mortgage, capital and interest or mixed repayment
there are loads of financial advisors about of which most will not charge a fee (they make money from the lenders)
they will be able to get you mortgage quotes and also submit agreement in principles on your behalf to give you an idea of what you can lend subject to further underwriting
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