could I get a £600k mortgage?

[missp2010]

I have a bit of a nuts idea, I'd just like some advice about whether or not it could be done. We are looking to move house and have found a property on the market for £700,000 our current house is worth roughly £340k we'd make about £120k so we'd need a mortgage of £600k. We do not have a big income at all, I'm a sahm and dh is a teacher. The thing is the property we're looking at has a swimming pool which the current owners hire out to swim/dive schools apparently making £3000 a month. They also say that they often turn people down, so it could be possible to make even more income from the pool. This income could therefore cover the mortgage payments.

Do you think any bank would lend us the money to buy this house? Or am I being completely stupid?

Thanks for any opinions.

FGS - no. Don't do it. I can't think of anything more stresssful than having to meet mortgage payments like that with not a lot of income.

Honestly????

I think the bank will laugh at you.

No

I very, very much doubt it!

Just how big is this swimming pool? Please satisfy my mindless curiosity.

Why are you looking at properties so far above what you can afford?

If the income is so high why are the vendors selling the house? Have you seen the books? Do you know anything about running a business - because that's what you're talking about.

Personally I think you're dreaming - get back to earth!

can they prove they make 3k a month, do they class it as income and is it taxable

How much do you earn?

How much is a mortgage for £600,000? If for some reason the pool was out of action for a month could you afford the repayments? If you're hiring it out you'll need public liability insurance etc? You'll need to make sure that health and safety is 100% up to date. Just imagine if someone had an accident or drowned?? You're mad to even think about it I think

It would be taxable income and the mortgage would be in excess of £3000 wouldn't it?

The pool is a red herring, surely. You'd only be able to borrow a multiple of your combined income. As a sahm and a teacher, I doubt that's £200,000?

Are they thurning over £3k a month or making that in profit? I would suspect the former - your actual profit could be a lot less. Pools cost a fortune to maintain and heat. You would definitely need public liability insurance. Business interruption cover to protect you if there was a problem with the pool. Also what about water rates - if you were using the pool as a business would they charge you business rates for water - or indeed any other utilities?

You would have to see all the books before giving it any serious thought, and tbh I can't see it would be workable. Sorry :(

I don't think so besides you may drown with the pressure of that level of overhead. You don't want to jump it at the deep end, do you? You may find yourselves, financially, always treading water.....

sorry, that would be turning

I think the pool may have lots of extra costs with it, heating, pool treatments, insurance and I don't know what else, I like the idea, mortgage repayments at the moment would be about £300 over 25 years but when/if rates increase may not be so great

£3000 sorry, 300 would be good though

I agree with HateSponge - I doubt they are making £3k profit a month and am sure there are lots of expenses. I also have no idea what the regulations on mortgages for self employed people are

Worst case scenario - next year interest rates go up, your pool gets a great big crack in it from where the 7 year old hit it when she dived in the shallow end and split her head open and is out of action for 2 months while you try to find the ££££ to fix it. Meanwhile someone has reported you to HMRC for undeclared income......

I am also curious about the size of this pool!

OMG a pool that can be used by a dive school in your home , wow !!!

this isn't real, surely. but if so please can we have the rightmove link to this house?

But on the minor off-chance it is real:

You want to borrow approx £400k based on the fact you have approx a £100k deposit for this house. And you want to do it on a teacher's salary?

Well for starters very few banks will now lend more than 75% valude of the property so you're looking at needing around £175k just for the deposit.

And then your dh probably earns maybe between 40/50k if he's a part of the school management team, bank will likely lend him about three times his salary so maybe another £150k.

dream on op it ain't gunna happen.

oooh yes we need the rightmove link!

Salary: (guess) £40,000
Pool Income (£3000 x 12) £36,000

Total £76,000

So you'd be looking for a mortgage of 8 times salary. And its not even all 'salary' the renting of the pool wouldn't be seen as secure by a bank like a salary

I'm beginning to feel bad for the OP. On another note though, thank God she asked us and not MSE!!!!
OP speak to a mortgage advisor before you go house hunting so you save yourselves some time and only look within your budget.

I did say it was a nuts idea, some people on here really need to get a life. Do you come here specifically to be rude and nasty to others?

To those who gave sensible replies, thank you. I guess you're all correct in your assumptions that it wouldn't be possible. We do have savings that could cover several payments if the pool was out of action. I do not know the details of their profits, just what I have been told by the estate agents. I don't see any harm in dreaming about owning the ideal property, I didn't go out searching for a house that was out of our budget. Just noticed it on rightmove and thought 'what if'.

I don't know the measurements of the pool, I used to take my daughter there for baby water/swim classes about 5 years ago. It's pretty big, almost the same size as my local council run pool I'd say.