chances of a mortgage?

T

tommythegun

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Hi ladies & gents, hoping somebody may be able to help.

An opportunity has arisen for me to buy my recently deceased grandfathers house for a good price of approx. 100k. I have a deposit to put down of 15k or so, and i don't intend to live in it, my sister currently does and will do so for the foreseeable future and I will pay the mortgage based on rental income. It needs no work done to it.

I save 700 per month and have been since Oct 2011, and pay 450 in rent since last June, was paying 250+ to my parents for years before that, so it makes sense financially. The repayments will be easily manageable.

Problem is, I work on a rolling temp contract, same employer since Oct 2011, and I earned 53k last year I think.I am masters degree educated and I'm not concerned too much about finding work elsewhere if it came to that (which I don't think it will, my company are just very slow with these kind of things and we are very busy).

I'm not sure this matters a jot to a bank, but would i be in a good position to be offered a mortgage on a buy to let basis?

It's too good an opportunity to turn down and the rent will easily pay the mortgage whilst i rent elsewhere. makes sense?

Hope for some replies.

Thanks, Tom
 
The temporary contract might be an issue. Maybe you could get an application looked at based on the type of industry you're qualified for, the sustainability of your employment & how transferrable your qualifications are. You may tick all the boxes financially but may not qualify because of employment. Are many banks offering Buy To Let loans?
 
thanks for the replies,

Another Q:

somebody put it to me last night that it could be possible to get my parents as guarantor on a mortgage for me based on their own house?

Never heard of this, is this even possible?

Thanks,
Tom
 
Thanks for the comments.

Why would you strongly recommend against it. I think I could make the repayments back pretty comfortably , and tbh it's probably my best option at the moment, if not my only one. It makes perfect financial sense to me.

Thanks,
Tom
 
Because you are putting your parents home at risk. More than likely the bank would be more interested in your parent's earning capacity so that they could pay the payment should you not be able to rather than the value of their property, having said that I doubt if any bank will give a mortgage on that basis anymore.
 
wbbs said:
Because you are putting your parents home at risk. More than likely the bank would be more interested in your parent's earning capacity so that they could pay the payment should you not be able to rather than the value of their property, having said that I doubt if any bank will give a mortgage on that basis anymore.
Click to expand...

I understand that of course, but I'm talking about a smallish , reasonable repayment mortgage, and if worse came to worse, the rental income would easily repay the mortgage. I wouldn't have worries about the repayments

Thanks for the input, I'm taking everything on board.
 
If your sister is living there, why doesn't she buy it? Also bear in mind banks are almost blanketly refusing 2nd mortgages for people, so if you do manage to get a mortgage for this, you will find it very very hard to get a mortgage for your own PPR.
 
tommythegun said:
Hi ladies & gents, hoping somebody may be able to help.

An opportunity has arisen for me to buy my recently deceased grandfathers house for a good price of approx. 100k. I have a deposit to put down of 15k or so, and i don't intend to live in it, my sister currently does and will do so for the foreseeable future and I will pay the mortgage based on rental income. It needs no work done to it.

I save 700 per month and have been since Oct 2011, and pay 450 in rent since last June, was paying 250+ to my parents for years before that, so it makes sense financially. The repayments will be easily manageable.

Problem is, I work on a rolling temp contract, same employer since Oct 2011, and I earned 53k last year I think.I am masters degree educated and I'm not concerned too much about finding work elsewhere if it came to that (which I don't think it will, my company are just very slow with these kind of things and we are very busy).

I'm not sure this matters a jot to a bank, but would i be in a good position to be offered a mortgage on a buy to let basis?

It's too good an opportunity to turn down and the rent will easily pay the mortgage whilst i rent elsewhere. makes sense?

Hope for some replies.

Thanks, Tom
Click to expand...



tom,

Before i could really provide you with a solid information about how you could actually do it, i would like to ask how long have you been working as a contractual before your current company?

Basically, this are the qualifications that is asked by all lenders:

1. A working history of not less than 2 years
2. an income of not less than 1900 a month
3. a Fico score which is not less than 640

So, if you yourself cannot qualify, then maybe you know someone who can apply for you. But then again you still have a chance to apply for yourself, but you would need to provide proof that you have been working for 2 years. I could actually recommend you to someone for consultation if you want.

Hope this could help.

-iloveflipping
 
Also just to mention have you factored in that you will be paying approx 50% tax on most of the rental income therefore it may not cover the full mortgage repayment?
 
SarahMc said:
If your sister is living there, why doesn't she buy it? Also bear in mind banks are almost blanketly refusing 2nd mortgages for people, so if you do manage to get a mortgage for this, you will find it very very hard to get a mortgage for your own PPR.
Click to expand...

Hi sarahMc , my sister is not in a position to buy, low income and husband lost his job.

Tom
 
iloveflippin said:
tom,

Before i could really provide you with a solid information about how you could actually do it, i would like to ask how long have you been working as a contractual before your current company?

Basically, this are the qualifications that is asked by all lenders:

1. A working history of not less than 2 years
2. an income of not less than 1900 a month
3. a Fico score which is not less than 640

So, if you yourself cannot qualify, then maybe you know someone who can apply for you. But then again you still have a chance to apply for yourself, but you would need to provide proof that you have been working for 2 years. I could actually recommend you to someone for consultation if you want.

Hope this could help.

-iloveflipping
Click to expand...

Thanks for the info, I'd be more than willing to listen to any advice if you can help.

Before my current position, I worked for a large healthcare multinational for 12 months, I got the job after working for 4 months for free on a scheme after finishing my masters degree. I left that position to move to my current position.

So based on your criteria, yes I have 2+ years work history, and yes to earning above €1900 pm, current income is about €2600 nett.

Also, I have a possibility of a house for myself, of which I would rent out a room to a friend for more income if the banks would be interested in that, so two possibilities . Same amount, around €100k - €120k say

Thanks,
Tom
 
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