Any advice or suggestions would be warmly welcomed…
My friend and I are recent graduates currently employed in high-mid teens salaried jobs while we (supposedly) seek more rewarding vocations. Having read the article on the C4 Money Pages about buying a property with up to four friends, we realise that if we find two more like minded (and salaried) individuals we could raise enough money for a four bedroom house and benefit from splitting major bills four ways.
However, for obvious reasons, we would prefer to organise a mortgage deal like a buy to let, but with the two of us living in the property along with two tenants/lodgers.
This is really what my questions stems from… are there any mortgage deals out there that allow the mortgage holder(s) to secure the size of mortgage against (or partially against) the potential for letting a proportion of the house, or is it possible to secure a buy to let mortgage against a property which will also be the mortgage holders sole residence?
A appreciate that buy to let mortgages realise a considerably lower loan to value than conventional mortgages. The two of us have about £15K in savings between us, but may need to be creative to obtain the necessary deposit. Looking at properties around £200K in the Chester area.
If you and your pal buy together you could increase your available mortgage by telling them you were going to rent rooms - a couple of lenders do this.
Best to go to a mortgage broker and outline your plans and they'll be able to tell you the best way to do it and the most you'll be able to borrow. In the meantime I've got a couple of properties to let in Chester......!
"If you can keep your head when all around you have lost theirs, then you probably haven't understood the seriousness of the situation."
Oooo, not sure why you think a BTL mortgage will be better. Residential mortgages are cheaper which you'll be entitled to if you live in the property. The first £4250 of income from letting rooms in your own home is tax free too!!
"If you can keep your head when all around you have lost theirs, then you probably haven't understood the seriousness of the situation."
Sorry but I really don't think it's a good idea. What happens when one of you wants to move? Or move a partner into the house? Things could get nasty, and expensive. You may well find it cheaper and a lot less hassle to rent a place with three others than to buy one - you won't have the expense of redecorating, maintenance, insurance, covering void periods etc. And you'll be able to continue saving until you have enough to buy on your own.
Anyway, that's just IMHO, so good luck with whatever you decide
AGREE---taking morgtages out with friends--close relative---is always a bad idea.its harder too be business like--when a money situation crops up----and can end in tears--emoitionaly and financialy
