Morgage based on current rent

Some lenders will go outside 'normal' multiples, although you may need to consult a mortgage broker to find which ones.

The biggest issue though has got to be whether you can afford it. Some questions to think about- not necessarily answer online are:

1. Do you have any other debt- car loans, credit cards etc?

1. How much of a deposit can you put down? 10%+ would help your case.

2. Can you afford legal fees, stamp duty, mortgage fees etc? possibly 3k on

1. How would you cope with a 1000 repair bill shortly after you moved in?

2. How would you manage if interest rates doubled? They could go even higher, but doubling over 2 years or so is not impossible.

1. Can you afford to furnish a property?

I dont mean to put you off, but a mortgage is a major long term commitment, which can limit your mobility. Think seriously about it and then if you are sure it is for you go for it.

James

Buy Outside Edinburgh then. If you went further out you would be able to get something a lot better

We cant always get the areas we want.

What happened to FTB's buying a grotty 1 bed flat in the east end? And moving up the ladder slowly, like out parents did. People just want the best, and they want it now, and they will not settle for less.

Yes you can. You can even buy perfectly decent flats in, say, Gorgie, for less than that.

Or more, even. Except that what you're falling foul of is the salary multiples, not the interest rate.

I don't know what an "ur salary" is. You may be thinking of a Buy-to-Let mortgage, which is based on the rent you expect to

One wheeze that seems a possibility is that, assuming your budget adds up, i.e. your salary is comfortably enough to pay the rent you would expect to collect, is to get a BTLM loan and then just forget about getting tenants and move in yourself instead.

I don't suppose it's crossed your mind that you might actually be better off renting, since with the market threatening to turn, you'd save a fortune by not exposing yourself to negative equity.

A bit like getting married, really. Possibly more so. How many married couples do you know who are still together twentyfi-, er, fiftee-, oh sod it, five years after tying the knot?

:-)

Assuming a 25-year repayment loan, this implies an APR of 2.25%. How will you get such a low interest rate? (At an APR of 5%, £435 per month corresponds to the repayments on a £75,000 loan.)

Give the guy a break. Why would you assume what you assume? What's wrong with assuming an interest-only loan?

Or an interest only loan at 5.2%.

A repayment loan is inferred by ommision if nothing else. I don't think asking about a possible flaw in the OPs calculations is unhelpful. Quite the opposite.

You can infer what you like, but how do you know it's what was intended to be implied?

That's true enough, but it's more helpful to do so only when there really is likely to be one.

"Phnix" wrote

Eh? Why is that then?

Further, as the OP didn't state which lender (s)he was talking about, should we "infer by ommission" that it was Halifax? Should we "infer by ommission" that he means a SVR rather than a tracker?? ....

I can't see any reason why one would need to assume a particular setup, just because *you* happen to think it should be X, Y, Z!!!

I'm female by the way.

If we were going to buy it would be outside the city as in the city is too much. We're after a garden so a flat is a no no.

I was told of a morgage that was based on what you can pay in rent per month which is more than for a morgage of 88k but based on rent equates to around 90k to 100k. The wage is 23500 but will be around

The woman that told me about this could have been muddled i dunno!

Aly (Alyana!!)

We won't hold that against you.

You can get garden flats. You can also get ordinary flats where the "drying green" either is already or has the potential to become a nice garden, and no-one else in the stair takes an interest in it. You just have to get lucky.

You'll find mortgage rates will also be going up, probably faster than rentals.

Probably was confusing it with BTL mortgages, which are based on rent.

Several years ago, I recall Standard Life making a play on the fact that they calculated the loan amount on affordability, rather than by multiples, but I imagine there are many lenders doing this now, as lending multiples aren't very sensible. Try talking to some large brokers who probably deal with similar cases all the time -