Matt H
Member
Registered: 11th Sep 01
Location: South Yorkshire
User status: Offline
|
Looking at Northern Rock & they do this. Obviously you pay the loan off over a silly time but if you already have a loan & can't really afford the loan & the mortgage its an attractive option
Question is: Anyone else know of any other companies that do this?
Thanksyou 
PS Looks like Im buying a house 
|
Cosmo
Member
Registered: 29th Mar 01
Location: Im the real one!
User status: Offline
|
most will do it if you can afford that amount of mortgage, its just consolidating your loans into one which makes it easier to repay.
|
whitter45
Member
Registered: 15th Nov 02
Location: Norton
User status: Offline
|
yes its l;ike getting a 110% mortgage
Like cosmo said if you can afford it most will do this - its more interest for them
|
whitter45
Member
Registered: 15th Nov 02
Location: Norton
User status: Offline
|
and in terms of buying a house greta move - just doing it myself now
|
Matt H
Member
Registered: 11th Sep 01
Location: South Yorkshire
User status: Offline
|
Im buying one to rent out. So the rent will be paying my mortgage & loan 
|
Colin
Member
Registered: 4th Apr 02
User status: Offline
|
Northern Rock do a mortgage where you can borrow 125% of the value of the property  Will be silly terms though!!
|
Matt H
Member
Registered: 11th Sep 01
Location: South Yorkshire
User status: Offline
|
Free money! Woo!
|
Melville
Member
Registered: 4th Jun 03
Location: Newcastle upon Tyne
User status: Offline
|
quote:
Originally posted by Matt H
Im buying one to rent out. So the rent will be paying my mortgage & loan
Are you sure the rent will cover the mortgage alone? Most people who have rental property who have bought recently are making a loss on the rental income which can then be set off against any capital gain.
|
Cosmo
Member
Registered: 29th Mar 01
Location: Im the real one!
User status: Offline
|
you getting buy to let or standard mortgage?
Aslong as the rent is something like 125% the mortgage repayments with the loan ontop you'll be good  (thats for BTL mortgages)
|
Cosmo
Member
Registered: 29th Mar 01
Location: Im the real one!
User status: Offline
|
Dont forget all the other nice costs when it comes to renting...maintenance, council tax bills, etc. etc. You also should keep some money saved if anything major goes wrong that you HAVE to fix otherwise can get in a bit of trouble!
|
Matt H
Member
Registered: 11th Sep 01
Location: South Yorkshire
User status: Offline
|
Its just a normal mortgage
I've looked at what they go for rent wise & my mortgage will be just under that
|
Colin
Member
Registered: 4th Apr 02
User status: Offline
|
I hope you have thought this out well...could end in disaster.
Have you checked out the rental potential & what money similar properties rent out for in the area?? Are you going to need to put any money into it to bring it up to scratch for renting out??You do know that if its a normal mortgage & not BTL & it lays empty you still need to pay council tax & rates etc. Borrowing over market value could be bad if it went tits over heels & you need to sell then realise your in negative equity.
Just a few things to think about....not saying you hav'nt/wont have thought it through but buying to rent on over 100% mortgage scares the life out of me. Be carefull friend.
|
Cosmo
Member
Registered: 29th Mar 01
Location: Im the real one!
User status: Offline
|
and do you intend to get your own personal mortgage in the future on another property? As this could cause more hassle when that comes round!
|
Matt H
Member
Registered: 11th Sep 01
Location: South Yorkshire
User status: Offline
|
Im already paying out for a loan as it is. Young & stupid with a credit card means you learn the hard way, unfortunately I did. It makes sense financially to get on the property ladder ASAP. House prices in the Doncaster & Hull area are expected to rise by 200%. At the moment its a cheapish place to live, but thats going to change.
I can afford the mortgage & council tax on my own without anyone paying rent. Having someone give me money every month towards this is just a bonus
|
whitter45
Member
Registered: 15th Nov 02
Location: Norton
User status: Offline
|
yes and soon you will need a certtificate to prove the house is up to standard and there is a cost associated with obtaining this certificate. It was meant to be legislation last year but got put back due to the impact it may have
|
Colin
Member
Registered: 4th Apr 02
User status: Offline
|
Its a big risk, bigger one than I would take but getting on the housing ladder is a good move, just be prepared to be skint for a while & have no money for cars/beer....unless that can be put on the mortgage too
I owe only 50% of my flats value now, after only 2 years - thinking about keeping it on to rent out once Im in a position to move up.
|
Matt H
Member
Registered: 11th Sep 01
Location: South Yorkshire
User status: Offline
|
Yes but your flat was silly cheap 
Enough to make me want to kill you 
|
Colin
Member
Registered: 4th Apr 02
User status: Offline
|
It was only silly cheap because some silly person took on too much debt & ended up losing probably everything!!
|
Matt H
Member
Registered: 11th Sep 01
Location: South Yorkshire
User status: Offline
|
You were lucky then!
|
mav
Member
Registered: 19th Jun 01
Location: Scotland
User status: Offline
|
quote:
Originally posted by Colin
Northern Rock do a mortgage where you can borrow 125% of the value of the property Will be silly terms though!!
not that silly
|
Whittie
Member
Registered: 11th Aug 06
Location: North Wales Drives: BMW, Corsa & Fiat
User status: Offline
|
|
mav
Member
Registered: 19th Jun 01
Location: Scotland
User status: Offline
|
I didn't borrow 125% of the value though...
|
Fee
Member
Registered: 16th Nov 05
Location: With AK
User status: Offline
|
Me and Adam are planning on buying another flat in a couple of months to rent out.
Best idea is to look around a bit first....
look at property to buy and property to rent...see what sort of price they're selling for and what sort of price similar ones are renting for.
In Edinburgh we're looking at about £150,000 for a two bed flat in need of a bit of work.
Will probably be able to rent it out for £700-800 once it's been done up though...so a couple of hundred over what the mortgage repayments would be. That can then be put towards factor fees and any maintenance required.
Hopefully!
|
Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
|
Most of the figures I've ever looked at would require you to have around 15-25% equity in the house in order to break even on rental income.
If you borrow 110% even if you are able to it'll be at silly interest rate and your rental income probably won't even come close to covering it.
|
