looking at purchasing a second home (flat).advice greatly appreciated NSC

[Hampden Park]

good morning all. we are thinking of purchasing a second home (flat) for our son/as an investment for the future. seems that most of the banks/building socities want at least a 20% (or more) deposit. is this the norm? was hoping for a 10% deposit. does anyone own a second home and have you any adivse for me please.
regards
The Fox

 

[Napper]

I hope your son realises how lucky he is

 

[mikeyjh]

I guess you're looking at it as a BTL property? I have a few houses and we're tended to use > 30% deposits, not sure you're going to get anything with a 10% deposit,

 

[Randsta]

What about the government incentive where they match your deposit, or something like that?

 

[The Antikythera Mechanism]

Can you remortgage your existing property? Makes life easier if you can.

 

[Maverick]

you will need 20% minimum for a buy to let mortgage.

 

[Hampden Park]

I guess you're looking at it as a BTL property? I have a few houses and we're tended to use > 30% deposits, not sure you're going to get anything with a 10% deposit,

No mike, didnt want to go down the BTL route as that seems to have higher deposits and higher mortgage rates. just want to buy this flat for him. If he decides not to live there in the long term then we would keep it as an investment and then think about BTL. seems that if you want to look after your young ones (by buying a second property) the powers that be bump up the levels of deposit. the property isnt expensive (£47 grand) but he cannot get the mortgage as he is only 21 and has just started working.

 

[Hampden Park]

What about the government incentive where they match your deposit, or something like that?

didnt think this was going to take off Randsta.

 

[Hampden Park]

Can you remortgage your existing property? Makes life easier if you can.

tried that T A M and we just miss out on our equity gap. this would have been easier for us.

 

[Hampden Park]

you will need 20% minimum for a buy to let mortgage.

looks that way Maverick. hey ho.

 

[bha100]

No mike, didnt want to go down the BTL route as that seems to have higher deposits and higher mortgage rates. just want to buy this flat for him. If he decides not to live there in the long term then we would keep it as an investment and then think about BTL. seems that if you want to look after your young ones (by buying a second property) the powers that be bump up the levels of deposit. the property isnt expensive (£47 grand) but he cannot get the mortgage as he is only 21 and has just started working.

Trouble is terms and conditions of a residential mortgages expect you to live in the properties as your own home, so your going to have to tell a porky to do that.

 

[Hampden Park]

Trouble is terms and conditions of a residential mortgages expect you to live in the properties as your own home, so your going to have to tell a porky to do that.

oh right, thanks bha100. porky pie it could be then.

 

[mikeyjh]

oh right, thanks bha100. porky pie it could be then.

Do be careful, that's less 'porky pie' and more 'fraud'

 

[Hampden Park]

Do be careful, that's less 'porky pie' and more 'fraud'

noted.

 

[pornomagboy]

I know it's extra monthly outgoings What about a loan

Or get a part own flat where deposit is only around £5k HydeHousing.co.uk: The Leading Hyde Housing Site on the Net

 

[Hampden Park]

I know it's extra monthly outgoings What about a loan

hadnt even crossed our minds pornomagboy, will look into that, thanks

 

[Comedy Steve]

I guess you're looking at it as a BTL property? I have a few houses and we're tended to use > 30% deposits, not sure you're going to get anything with a 10% deposit,

Agreed; Interest rates on BTL only become realistic at 35 - 40% deposit - your best bet is to fund a purchase in his name.

 

[pornomagboy]

hadnt even crossed our minds pornomagboy, will look into that, thanks

Edited post above

 

[Hampden Park]

thanks Comedy Steve and pornomagboy et al

 

[Tricky Dicky]

Can you remortgage your existing property? Makes life easier if you can.

That's what I did when I bought a second property. Paid off my mortgage on my house, then borrowed against it again to purchase part of the second one. Seemed to work for me.