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So a friend and myself are thinking about getting a 3 bed place on a joint mortgage but after have a brief scan online I wondered if the STW horde could speed up our process and mention any useful bits for our consideration and so on.
Between us we bring in around 40k and we can put around 7-10k each.
My credit history is good from paying for lots on credit cards and other contracts and always paying back on time over the last 6 years. My snag is that I'm self employed.
My friends job is PAYE and he has a lot more savings in his account than me.
We are both around 25/7 and first time buyers. Is looking at a property for £150k unreasonable?
Go see someone, get a mortgage in principle, then look at houses around the price you can afford (+20% for negotiations on price).
self employed shouldn't be a problem, most if not all lenders will require 3 years figures. If you're a sole trader they will use the net profit figure shown on your tax returns. If this figure is declining over the 3 years you may also have some issues there.
Good luck. I am a mortgage adviser by trade, my advice is a fixed rate, for 5 years or 10 years if you can commit to that.
Going into a mortgage with your friend is tricky though, what will happen when one of you find a woman and want a mortgage with them or just to move and the other doesn't. In that situation if you want to keep that mortgage you'll have to show to the lender that you can support the mortgage with your own income.
As jekkle says make sure you agree up front who gets what etc.
If you're mate is going to be putting in more deposit then does he/she get a percentage more of the house price when you sell, or just his extra deposit back - things like that.
Thanks guys 🙂
as jekkyl says above. i do mortgages too. i'd guess a combined income of 40k is pushing your luck, but an agreement in principle will find out.
most important factor is your escape route when one of you wants to sell out - the other would need to fund the whole thing themselves (so without another partner to take original person's place, on figures above that would mean sell).
unless you are sure you want to live together for a long time might be worth just renting and saving your costs.
It wasn't specifically for me to move into - I was thinking more my mate could move in and I could rent my room out - but I shouldn't be telling people that should I?