Firstly i now i need to get some proper financial advice i'm just wanting at this stage to get some casual advice.
I'm currently living at home and im 21. I've had a business account with hsbc for around 8 months. The business is doing ok and i will probably earn in the region of 20 thousand this year. I've been taking 600 a month out which is what i need to live. I have around 10,000 in the business account. I now i should have that in a high interest account which is something i'm going to do. Will i be able to get a decent rate on a mortgage. Will the bank look at me like this. I take 600 out a week and have built 10,000 up in the business account in 8 months. So
600 x 12 = 7200
10,000 in 8 months so 15,000 in 12 months. will they give me a mortgage as if i earn 22,200? I also intend to let the property out. I dont wish to move out yet. I'll have 10,000 deposit and wish to buy a hose around 75,000
Do you know the difference between "now" and "know"? It's damned irritating when reading this sort of thing because it doesn't make sense, and you have to backtrack and notice that the writer has made a mistake, work out what the mistake was and what he meant to write. All this wastes time.
Don't rely on spell-chekers. Switch them off, because they give you a false sense of it being right (all they know is that "now" is a valid word, but not that it's the wrong word). Do your own proofreading.
Sorry to harp on, but you made the same mistake further down.
Probably not. Lenders are nervous about self-employed people who have been in business only a short time. They like to see a longer history. Maybe two years.
You could go for a BTL mortgage instead. See a local friendly mortgage advisor for a chat to discuss options. BTL loans are not generally calculated on your earnings but on the anticipated rental income. If the rent each month is around 130% of the mortgage payments, they'll usually be happy to lend, though many lenders will want you to have at least *some* income (typically at least £15k) to prove that you would not be relying on rental income for your living. The fact that you are living "at home" (as you put it, but everyone lives at home, I think you mean "with parents") should count in your favour in that respect (unless they suspect you're trying to pull a fast one and go for an easier-to-obtain BTL loan but actually intending to live there).
BTL lenders like to see a 20% deposit, though some will let you get away with as little as 15%, and you're not quite there yet, considering that you will have expenses other than just the purchase price (survey fees, legal fees, mortgage fees, redecorating, furniture, advertising).
Just concentrate your efforts on your existing business, and leave this idea on the back burner for another 8-12 months. And even then, take your time. Visit lots of houses for sale and think what you would do to them. Sooner or later the right one will come along. And one more thing, and this is very important: Judge the houses you visit not by how *you* like them, but by how you reckon your target tenant would.
Cheers guys. Even noted the spelling. Spoke to someone at hsbc today on the web chat system they had and they said it would be very hard to get a mortgage on the basis of a business thats less then a year old. Cant really afford it yet i dont think. Thanks
After a fashion. Actually, he's a real person, a one-time (and for all I know still current) contributor to alt.usage.english (which I no longer have time to read).
He discovered and pointed out the interesting phenomenon, which subsequently became known as his "law", that a post correcting someone's spelling, punctuation, or grammar had a higher probability than one might expect of itself containing such a mistake.
Sometimes expressed as "the likelihood of an error in a post is directly proportional to the embarrassment it will cause the poster".
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