Tiesto
Member
Registered: 6th Jun 02
Location: Hinckley, Leicestershire
User status: Offline
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Right,
Where my parents live there is a flat for sale which is up for 80k, needs some TLC though. Parents bought theres for 115k 5 months ago (worth 125k now), so i know when its modernised abit there will be some but not a lot money available.
Ive tried to get some idea of mortgages that i could get, basically they're saying i can only borrow 69k (im on 18.5k p.a). I have no deposit at the moment, but i can sell the car and get 5k towards it.
I know i can afford the repayments, as i won't be living there as i have accomodation with my brother where i only pay £200 a month with everything inc food etc, and no other repayments other than the car.
I would plan to modernise and let out as a holiday flat (some flats are doing this at the moment) - its next Rutland Park - Bird watchers paradise apparently.
Is there any way of getting a higher amount of mortgage seems around the 3.5 times my salary mark at the moment?
Or does anyone know if these interest only mortgages offer more (i only plan to keep for 2 years)
Really want to get on the property ladder while i can afford it. 
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Colin
Member
Registered: 4th Apr 02
User status: Offline
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3-4x pre tax income is the norm, cant really see them making an exception here. Normally they offer you 95% value of the property where you pay 5% deposit. Your 5k wont go far towards paying that & the fees incurred.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
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You're only 6k short. I would say this is possible.
You'll certainly be selling the car though. In fact it might look better if you tell them you already have, or do so and have the money sitting there.
75k on an 80k property is 93% so you're within 95% LTV requirement that most lenders will have although some go for 100% for first time buyer. This may work out your better option if you're able and someone will lend you 80 as you've then cash to modernise although compare the rate on the 100% LTV deal with the cost of borrowing on personal loans to finance improvements, if you can pay off kitchen/bathroom whatever quicker than it'll cost less to borrow it.
Having said that a bad deal isn't the end of the world in the short term as if what you are saying about the value of the property is right then you would remortgage in two years or so when the improvements are carried out, property will be worth more, your borrowing will be similar so your LTV automatically goes down and you become eligible for better deals. This assumes your idea about a flat going for 80 being worth 125 after a bit of work stands true. Market forces would normally indicate that things aren't that easy.
Difficult to budget though if you're fresh in there.
Basically you want to be aiming to get an approval on £80k. Go see a few more people.
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