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.
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
F.P.C. 1,2,3 Qualified
Financial Planning Certificate
CeMap Qualified
Whole of Market Mortgage Broker
Managing Director : Debt Advisory Bureau
Debt Advisory 4U
Principal : All Mortgage Products
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.
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.
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
F.P.C. 1,2,3 Qualified
Financial Planning Certificate
CeMap Qualified
Whole of Market Mortgage Broker
Managing Director : Debt Advisory Bureau
Debt Advisory 4U
Principal : All Mortgage Products
