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Can I get a mortgage as a LP? I have no clue, please help!

1 reply

lightisrightisnight · 29/01/2019 19:16

Ok, so I am totally fed up with living in woodchip heaven!

I'm coming close to 40 so need to do it soon if ever. I'm DESPERATE to buy and make a nice home. I don't care if it's a do-er upper. I think it would (to some extent!) be fun to do it up and make it lovely.

I'm a completely LP and have access to around £15k for a deposit (some savings, help from relatives).

My annual earnings are around £18k (part time self employed, I do my accounts myself but not through accountant) plus I get tax credits and child tax credits on top bringing my total income to around £21k ish.

Looking at one bank it seemed to suggest I could borrow just shy of £100k for a mortgage.

On top of this I would have my deposit of 15k.

I guess my questions are:

  • I don't have chartered accounts but looking at one bank website it says you just need evidence of your HMRC statements for income.
  • What additional fees might be applicable, I have no idea about buying whatsoever. e.g. on top of mortgage what roughly might I have to pay out for (estate agent fees? solicitors? survey etc? life insurance?). Would this have to be found on top of any monies I put towards mortgage? (I'm not thinking of decorating costs at this point).
  • Is it a bad time to potentially buy ,with Brexit coming up and everything else (I do worry about recession and its impact on me as a freelancer).

If you have any guidance whatsoever for a complete novice and low income person buying on their own I would be so grateful. Thank you!

OP posts:
shortgreengiraffe · 29/01/2019 19:38

I would suggest seeing a mortgage broker although most will charge a fee. The benefit is they will be able to find a mortgage provider which suits your circumstances.

If you're looking to buy somewhere around £115k you won't have to pay stamp duty. And you don't pay estate agent fees as a buyer. But you will need to pay mortgage arrangement fees (sometimes they can be added to the mortgage, I think), solicitors fees, searches and a survey. You probably need £1500-2000 for these fees.

You will have to pay buildings insurance on top of the monthly mortgage (shop around) and life insurance if you need it (you may not).

Good luck!

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