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  1. #1

    Want to buy but need to rent too

    Hi, all, hoping for some sage advice....

    I work in London and rent here (1,700 per month). I would like to buy a very modest (less than 125,000) property in the Scottish Highlands. The plan is to use it as a bolt hole until my retirement when I plan to move there permanently. I’ve never had a mortgage before and currently earn 56,000 p.a. I could probably find somewhere cheaper to rent (approx 1,400 per month). I am 54 and single with no dependants. I have worked for my current employer for two years. I have a DMP with a balance of 8,000 - I’ve never missed a payment on this for the last five years.

    Questions are:
    would I get accepted for a mortgage for a home I don’t yet intend to live in, while still paying a huge whack of rent here?
    Will the DMP be a problem?
    Any suggestions on mortgage provider? I bank with Nationwide currently and have no overdraft facility (by choice) and have never blotted my copybook with them.

  2. #2
    What will happen to the property Monday to Sunday? If it will be let out then you need a BTL, if it will be empty then it could be a problem. If it will be empty during the weekend with you in it at weekends, less of a problem.

    The DMP could be the biggest issue, it will depend on how everything appears on your credit report.

    The other potential issue will be affordability. Your income supports the Mortgage easily and some rent will be fine, whether it fits with 1400 or 1700 rent is another matter and one that would need to be put through affordability calculators.

    In terms of lenders, it will depend on the above. Personally I would get your credit reports infront of an experienced broker.

  3. #3
    If you've savings. Why not use them to clear the DMP. A lender isn't going to look very favourably on an applicant that isn't repaying their debts, but using the DMP as an interest free loan.

  4. #4
    How much do you have for a deposit? You need to consider that at 54 you're unlikely to get a "full term" mortgage (25 years) unless you have a vehicle in place to make the repayments after you retire (guaranteed pension etc).

    You could of course get a shortened term (i.e. from now until your anticipated retirement age), which on a property value of 125k / salary of 56k could still be affordable, but probably not if you're also deducting huge London rent.

    Depending on how much you have to put down, if I were in your shoes I'd look at getting a cheap BTL which I could then move into / sell and replace when I eventually retired. But as this requires a higher deposit - and your choice of lenders is going to be more limited due to the DMP - you may need to lower your target value. Still, there are plenty of nice 1-2 bed flats in Scotland for under 100k.

  5. #5
    Thank you all for your comments. I don’t have savings so am not using the DMP as a loan. That would be ridiculous to my mind. It is currently my priority to pay that off.

    BTL would be great but I think I’d need more than 40k deposit which is out of my reach.

    Thanks again, all. I think I need to approach a local mortgage broker to get a clearer picture of next steps.

    All the best.


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