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Property

5 replies

Mackmama · 11/11/2021 16:55

Our situation is that both myself and DP had mortgages on homes with our respective exes. When my partners relationship broke down, his ex stayed in their house and eventually sold it at a massive loss causing him to have to go bankrupt. My ex also stayed in the house and I left as he was older than me and was able to keep it on by himself. We’ve rented a house we like in and area we like for years but we wouldn’t be in a position to buy a house of the size we’d need where we want to live for kids schools etc…Now that nursery fees are done, we’re thinking we probably need to have some kind of property, we could possibly afford to buy somewhere small, in another area, make improvements then sell on or rent it out while we stay in our rented house. Is this feasible does anyone know, what kind of mortgage would we need, how much deposit etc…DP has recently gone self employed so I guess I’d need to get the mortgage on my own or wait until he can get one too? Sorry lots of questions but it’s so complicated!

OP posts:
Residentnumber1 · 11/11/2021 17:46

What is your question?

Mackmama · 11/11/2021 17:54

Can we get a mortgage on a property to do up and sell if we don’t already own another one and if so what type I suppose. I felt I had to give the background as I think it might impact on the type of mortgage we could get.

OP posts:
Blahdyblahbla · 11/11/2021 18:05

I think its almost impossible to get a buy to let mortgage of you aren't already a home owner.

Alwayscheerful · 14/11/2021 10:28

It might be possible to agree a residential mortgage as an owner occupier and be able to work on the property and sell it , however you would not necessarily make money. It is easy to make money in a rising market but the market is likely to be stagnant in the next few years. Property should be viewed as an illiquid asset.
You should also consider insurance and capital gains tax if the property is not to be your main residence.
You would need a buy to let mortgage if you want to let the property , in exceptional circumstances, lenders will give permission to let with residential mortgages for example if you are going to work abroad.

Residentnumber1 · 14/11/2021 10:40

I'd contact a whole of market broker, someone like L&C, and ask them if its possible. There will be a way, but the cost may rule out what you want to do.

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