Can you buy a house with £70,000?
I am 24 and work as a Catering Assistant for an agency in hotels around London. I work 4 days a week.
I live in London with my family and pay a small rent but also help out with housework and shopping.
I have £30,000 saved up and my parents will give me another £40,000
Can I buy a house outside of London somewhere cheap, fix it up and rent the rooms out which should cover the mortgage and have a little over for me? I was thinking of buying a 3 bedroom house and renting out all the rooms including the living room. I won’t be buying a house in London because it’s expensive I’m thinking outside of London but I don’t know where. I’ll have to do some research.
What do you think? If I go to get an mortgage and explain that to the banks will they lend me the money?
- sunshine_melLv 77 months ago
There is not going to be anywhere within a reasonable reach of London that will cost only £70,000
- ibu guruLv 77 months ago
They will not count any proposed rental income in calculating your earnings, affordability. IF you had an established rental income, lenders discount rental income heavily due to high incidence of vacancies, non-payment of rent, etc. You cannot rent out the living room. With a 3 BR house, you might rent 2 bedrooms, but you'd better have more than one bathroom for 3 people (you + 2 tenants). Lenders will only go on your earnings from your job (which does not sound all that great if you only work 4 days a week), amount of down payment, credit history.
- Anonymous7 months ago
There is a way to buy a nice property as an investment. You use most of the money as a deposit and pay off the balance with a Buy-To-Let mortgage. There are firms that base the loan on projected rental income, not your salary. The Mortgage Works is one, but shop around. There is a set up fee and the interest payments are a little higher than standard mortgages. But if you buy the right property the rent will cover the repayments with a sizeable chunk to spare. So you need to talk to lenders. Take your time and consider carefully. You can arrange interest only payments but you need to either make over-payments to the principle or have some method of settlement at the end of the loan period.
Bear in mind that location is very important. Use a letting agent for safety. Their fees are tax deductible.Source(s): UK Landlord.
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- SimplytheFACTSLv 77 months ago
who is going to give you money to fix it up?
- TavyLv 77 months ago
You need to look on Rightmove or go to an Auction. Lenders require you to pay at least 5% of the asking price and will lend 3X your annual salary in the U.K.
- Anonymous7 months ago
I think you are being very naive.