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  • Mortgages & Finance

    Advice on Finance for my rented home

    Hi guys, I’m new to the site and looking for some help, I hope you don’t mind my question. I’m from Belfast, 27 years old, and in a stable job as a high street clothes store manager.

    In August I made a 6 month agreement with a landlord to rent a 2 bedroom terrace house, however the landlord now wants to sell rather than renew another rent agreement and has offered me first choice at buying with a sale price of £66,000, he’d otherwise have an estate agent asking price of £69,500.

    He already had a sale agreed of £68,950 early in 2018 before the buyer’s mortgage fell through, then took it off the market to rent it out instead. 

    However, I’m not in a position right this minute to buy because I haven’t enough deposit saved and spoke this week with an independent mortgage advisor who was happy with my affordability and gave me a quote of £280 a month repayment but told me to come back to them in 12 months when I have a little more saved, but I’ve made my home here and don’t want to lose it and have to move.

    What I was wondering was, would there be any investors around who would be interested in buying where I would pay them a monthly rent of £100 above the monthly repayment amount and agree for me to buy back in 12-24 months time for an additional £2,000 above the sale price? 

    I understand it’s a little bit of an out of the ordinary request but I’m looking at all options to keep my home, any help would be very much appreciated. Thanks

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    You would imagine the current landlord would be happy with such a deal, given another 12 months.

    Did your mortgage adviser look at other options such as "Family Springboard" type mortgages, where a family member helps towards the deposit/security? Not ideal for all but often overlooked.

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    I think that is a possible option.

    I would check with the team at Property Tribes Financial Services on 01206 654444 that you have been given the correct residential mortgage advice.  The other broker you spoke to might not have access to the whole of the market.

    It would obviously be better for you if you could just do a straightforward transaction.

    You could also suggest to your landlord that he sells the property as tenanted as it might take a long time to sell in the current market conditions, as you would like to stay there and continue to pay him rent up until the completion of the sale.  You could then maybe make the purchase proposition to your new landlord.

    Good luck and I hope you can find a way to remain in your home.

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    Thanks guys, family may be able to help with the deposit however I’ve called the mortgage advisor back for a little more clarity. She’s added that the reason she’s advised to come back in 12 months is that credit card defaults from 5 years ago when I was younger and not in as good a financial position has left a mark on my credit file but with continuing to pay all and boost as I am doing now that a mortgage should get approval ok and that my current finances and affordability are all very good.

    She’s also advised me that if the interest rate remains around the same that I’d have a monthly repayment of about £280. Perhaps looking at an “adverse credit mortgage” would be an option, any advice? Thanks for all help so far. :-)

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