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Posted: Fri Dec 19, 2008 12:49 pm
by chris12
Hi,
I asked a question yesterday but probably did it wrong!
My question is this:
My wife and I are nearing the end of our IVA (Sep 09) and will have the opportunity to buy a plot of land from my father in a couple of years time. He intends to build a property on the land and let it to us (passing it to us when he dies). I am a member of the Armed Forces and so am able to borrow against my pension,save my Operational bonus and when added to saving the equivalent of my IVA per month I should be able to raise a respectable deposit. Will I be able to get a mortgage for the land? I have been told that it would be a commercial mortgage, does this effect my chances?
Regards Chris.
Posted: Fri Dec 19, 2008 1:25 pm
by Welsh Boy
chris12
The key factor here will be the size of the deposit available against the value of the land you aim to purchase.
Affordability whether it be via pension income will also be an important point, your application would be assessed on your own particular set of circumstances and the products and rates that may be available would be ascertained from there.Hope this helps Tony
Posted: Fri Dec 19, 2008 6:36 pm
by chris12
Tony,
thanks for replying.
The land will be around £75000 and I expect to be able to raise £15000 as a deposit. I will be applying while still serving with a salary of £41000 and my pension on retirement will be £55000 lump sum (tax free) and about £10000 a year (taxed). I will also be working but have no idea of salary.
Can you give me any idea as to the prospect of mortgage?
Regards Chris.
Posted: Fri Dec 19, 2008 6:54 pm
by Adam Davies
Hi
With a 20% deposit you stand a very good chance.I would use a mortgage broker rather than a High St Bank
Regards
Posted: Fri Dec 19, 2008 7:06 pm
by Welsh Boy
chris12
Based on the information you have given I would think your prospects of obtaining mortgage finance would be good. Tony
Posted: Fri Dec 19, 2008 7:32 pm
by chris12
Tony and Dave,
Thanks for taking time to answer my questions.
Do you know of any brokers or advisers who would be willing to talk to me regarding a mortgage? Or would it be better to wait until I have completed the IVA before discussing mortgages?
I am keen to plan for the cost of the repayments and ensure that I am able to afford the long term situation. I don't want to land in the same mess as before.
Regards Chris.
Posted: Fri Dec 19, 2008 8:36 pm
by Welsh Boy
chris12
What I would suggest is roughly 2-3 months before you intend making the purchase contact a whole of market broker and they will gather all the information they need from you to enable them to advise you correctly. Tony
Posted: Sat Dec 20, 2008 7:20 am
by luluj
Why not contact welsh boy - he can't personally tell you to do that but his last post says he can help !
Posted: Sat Dec 20, 2008 10:13 am
by chris12
Tony,
thanks for your advice and thanks lulu, I will be in touch nearer the time.
Regards Chris.
Posted: Sat Dec 20, 2008 10:41 am
by MelanieGiles
Tony is one of the best mortgage brokers I have ever worked with, and certainly ought to be able to help you when the time is right.