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



Hampden Park

Ex R.N.
Oct 7, 2003
4,987
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
 




mikeyjh

Well-known member
Dec 17, 2008
4,473
Llanymawddwy
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,
 










Hampden Park

Ex R.N.
Oct 7, 2003
4,987
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.
 










bha100

Active member
Aug 25, 2011
898
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

Ex R.N.
Oct 7, 2003
4,987
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.
 












Comedy Steve

We're f'ing brilliant
Oct 20, 2003
1,485
BN6
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

wake me up before you gogo who needs potter when
May 16, 2006
6,014
peacehaven






Tricky Dicky

New member
Jul 27, 2004
13,558
Sunny Shoreham
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.
 



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