Solumtoya:


You start paying Mortgage monthly instalments at Completion when you move in. However, unless the Developer allows you, you will typically be required to pay the deposit at Exchange of Contracts.

When you complete; yes, but not necessarily when you move in. People don't move in on the day they complete for different reasons, it is not uncommon to pay both mortgage and rent for a couple of weeks or months before moving in.

Estroller:


When you complete; yes, but not necessarily when you move in. People don't move in on the day they complete for different reasons, it is not uncommon to pay both mortgage and rent for a couple of weeks or months before moving in.

Absolutely. I was trying to differentiate Completion from Exchange of Contracts. I should have said "when you get your keys".

dduchess90:
Hello all

I can hopefully give ideas on Shared Ownership scheme( part own,part rent) if anyone is interested in that.

Cheers

This looks good from what I've seen so far. Could you want to shed more light, please?

I greet everyone here and the founding fathers of this great, insightful and very educative thread. I salute men like Ticha,Semmyk, solumtoya, lexusgs430 and host of others in here.
To cut to the chase

I recently concluded my masters in the Uk and I have been here for total of 16 months.
I stay in a student accommodation shared flat which is all bills inclusive, so no council tax or any other utilities bill in my name. ( I want to know if staying in the students accommodation impacts my growth in the youkay negatively)
I’m on tier 2 visa with a healthcare social care company with 3 years visa.
Annual salary with the company is about 21,700
And I can still get 20hrs weekly side job to get it up to 33k or 34k annually.
My credit score from my Lloyds bank is about 544, I’m single and interested in getting a BTL house.
I intend to liquidate an asset back home in order to raise about 20k pounds to 25k pounds for down payment.
Please great minds in the house, I need the best advice on how to go about this. I welcome every advice, direction,suggestions and information to succeed like many of us has testified. Thank you 🙏🏾

chimexview:
I greet everyone here and the founding fathers of this great, insightful and very educative thread. I salute men like Ticha,Semmyk, solumtoya, lexusgs430 and host of others in here.
To cut to the chase

I recently concluded my masters in the Uk and I have been here for total of 16 months.
I stay in a student accommodation shared flat which is all bills inclusive, so no council tax or any other utilities bill in my name. ( I want to know if staying in the students accommodation impacts my growth in the youkay negatively)
I’m on tier 2 visa with a healthcare social care company with 3 years visa.
Annual salary with the company is about 21,700
And I can still get 20hrs weekly side job to get it up to 33k or 34k annually.
My credit score from my Lloyds bank is about 544, I’m single and interested in getting a BTL house.
I intend to liquidate an asset back home in order to raise about 20k pounds to 25k pounds for down payment.
Please great minds in the house, I need the best advice on how to go about this. I welcome every advice, direction,suggestions and information to succeed like many of us has testified. Thank you 🙏🏾

Credit score doesn't mean much - your credit history is more important. Recently went thru the process and was surprised the undue popularity credit scores are given which my bank didn't care for.

An app like credit Karma can guide you thru basic steps to improve your history you may not have considered. E.g electoral roll, phone contract e.t.c.
Having a credit card is also good and depending on utilisation, you might ask for a balanace increase 6monthly. But avoid doing this 6-9m to a mortgage application as it would leave a hard search on your file. My banker once told me that a very high CC balance might not reflect well on a mortgage application.

A student accommodation shouldn't be an issue. You could use a rent reporting agency - i.e tracks your rent payment and reports it to select credit agencies. I used one but uncertain what benefit it actually made.

As regards money you are bringing in from 9ja, it's worth sorting it at least 6m before you apply for a mortgage. This is so you don't have to go thru the bothersome AML loops when you submit your statement. You could put it in a LISA or Cash ISA. Goes without saying that it's worth maximising your LISA if eligible and you haven't.

jedisco:


Credit score doesn't mean much - your credit history is more important. Recently went thru the process and was surprised the undue popularity credit scores are given which my bank didn't care for.

An app like credit Karma can guide you thru basic steps to improve your history you may not have considered. E.g electoral roll, phone contract e.t.c.
Having a credit card is also good and depending on utilisation, you might ask for a balanace increase 6monthly. But avoid doing this 6-9m to a mortgage application as it would leave a hard search on your file. My banker once told me that a very high CC balance might not reflect well on a mortgage application.

A student accommodation shouldn't be an issue. You could use a rent reporting agency - i.e tracks your rent payment and reports it to select credit agencies. I used one but uncertain what benefit it actually made.

As regards money you are bringing in from 9ja, it's worth sorting it at least 6m before you apply for a mortgage. This is so you don't have to go thru the bothersome AML loops when you submit your statement. You could put it in a LISA or Cash ISA. Goes without saying that it's worth maximising your LISA if eligible and you haven't.

Ok I did a quick search on credit karma but it came out with no result and they advised I wait for the next 30 days before trying. I have one phone contract with two lines contract that has been on direct debit since May. My rent is on direct debit and it gets paid as at when due. So I should get 6mill while I work out the rest from here? I have not used LISA or CASH ISA before and I want to do that but the conditions I saw on that app shows it’s for home owners who wants to live in the house they bought and not to rent cause my intention is to rent it out. And Thank you for your assistance

chimexview:

My credit score from my Lloyds bank is about 544, I’m single and interested in getting a BTL house.
I intend to liquidate an asset back home in order to raise about 20k pounds to 25k pounds for down payment.

You are better off buying your own home first before buying a BTL.

For a BTL, you need a 25% deposit, rent is stress tested at 125% of the monthly mortgage payment
Mortgage fees are around £1500 to £3000.
Survey fees £800 ish
Solicitor fees £1500

So your £25k is already down to £20k before you even take up a mortgage.

A £20k deposit means you're looking at properties around the £80k mark. Even in very derived areas of the North and Scotland, I doubt that are many properties floating around at £80k which needs zero work and you can get awesome tenants for.

After getting the mortgage and before having tenants, you will need to have an EICR completed, a legionnaires test and a gas safety check if the property has a gas supply. That's easily another £1k if there are no issues at all which is highly unlikely at that price point.

Then you need to set aside Oga Charlie's cut from the rental income. As you're already working, your tax free allowance is gone. So you'll be taxed at your standard tax rate on every penny that comes in as rent minus expenses.

Then you need to set aside monies for any repairs that tenants will throw at you.

You will also lose your first home buyer status which means when you come to buy your own home, you will be paying a hefty stamp duty tax as well.

chimexview:


Ok I did a quick search on credit karma but it came out with no result and they advised I wait for the next 30 days before trying. I have one phone contract with two lines contract that has been on direct debit since May. My rent is on direct debit and it gets paid as at when due. So I should get 6mill while I work out the rest from here? I have not used LISA or CASH ISA before and I want to do that but the conditions I saw on that app shows it’s for home owners who wants to live in the house they bought and not to rent cause my intention is to rent it out. And Thank you for your assistance

By 6m I meant 6 months. I.e avoid applying for a credit card increase 6-9months to a mortgage application..

It's odd you want to rent out your first property in the UK while you're still renting yourself. Tichas post does expounds on this well. BTL might not be the money printer many think it is.

Yeah LISA is intended for home owners i.e cant use it for BTL.. but nothing stops you from renting your place out if you get a second house in future or more practically getting a lodger. With a lodger, its easier to get them out and the first 7.5k is taxfree.

Lastly, remember you need to have a LISA open for a year to use it for a home.

@ticha
@jedisco
Ok clearly BTL is not for me for now so I will go for my own personal home then. So I want to know if there will be restrictions regarding bringing in money from sale of my property back home into youkay? I’m referring to will it be seen as money laundering, and also tax implications? What’s the price range of homes will you advise me to go for and type of home too(flats? Terrace? Semi detached etc)?
Apart from funding my LISA which I intend to fund from my savings back home, What’s the first thing/body I need to get to start this journey?
I’m more than grateful guys for your assistance, more keys to you 🙏🏾

chimexview:
@ticha
@jedisco
Ok clearly BTL is not for me for now so I will go for my own personal home then. So I want to know if there will be restrictions regarding bringing in money from sale of my property back home into youkay? I’m referring to will it be seen as money laundering, and also tax implications? What’s the price range of homes will you advise me to go for and type of home too(flats? Terrace? Semi detached etc)?
Apart from funding my LISA which I intend to fund from my savings back home, What’s the first thing/body I need to get to start this journey?
I’m more than grateful guys for your assistance, more keys to you 🙏🏾

LISA is meant to be for first time buyers. If you already own a home in Nigeria or elsewhere, I’m afraid you do not qualify to fund your UK house purchase through a LiSA. You can use the LISA as retirement savings.

chimexview:
@ticha
@jedisco
Ok clearly BTL is not for me for now so I will go for my own personal home then. So I want to know if there will be restrictions regarding bringing in money from sale of my property back home into youkay? I’m referring to will it be seen as money laundering, and also tax implications? What’s the price range of homes will you advise me to go for and type of home too(flats? Terrace? Semi detached etc)?
Apart from funding my LISA which I intend to fund from my savings back home, What’s the first thing/body I need to get to start this journey?
I’m more than grateful guys for your assistance, more keys to you 🙏🏾

The first thing is to have an idea of the property you want yo buy. You could download rightmove and look up properties in your area. You might need upto 15% deposit as a ftb. That guides you on what deposit you need.

Different house types all have their pros and cons with detached houses more sought after (where possible) and hence appreciate more. With flats, you need to read the fine detail well. It's ultimately for you to decide. Personally, I'd mostly go detached where possible.

If you've owned a property elsewhere, then by the book you shouldn't use a LISA. OTOH, that has not stopped a number of folks from developing nations using a LISA/ FTB privileges for their first homes here. As no agency goes tracing whether they have a property back home or not. Morso, many property prices back home hardly tick move the needle here.

If you are disposing off a property back home, bringing the money over shouldn't be an issue as it's clean. However, depending on the sum, the bank may look in further due to AML rules hence you need to take care as the process can be bothersome. Apps like lemfy e.t.c exist or you may bring it in aliquots if its a small sum.

I think the stage you are now is a stage where you should save, dispose and repatriate funds from your property (if its your plan), keep an eye on prices and perhaps in 1-2yrs time you should be ready to proceed

Good morning ndi Ichie.
Please I like to know if I will be asked to bring a document to proof my address in Nigeria.

We have meet our two years mark in the Youkay and have started our Mortgage journey thanks to all the guidelines here.

I have been asked to give 3years address, two years in the Youkay (Given) and at least one year in Nigeria.

As we nor get NEPA bill with our name on it.
They only alternative would be Bank Statement.

So I would like to know, so I can give the address in my bank account.

Ticha:


You are better off buying your own home first before buying a BTL.

For a BTL, you need a 25% deposit, rent is stress tested at 125% of the monthly mortgage payment
Mortgage fees are around £1500 to £3000.
Survey fees £800 ish
Solicitor fees £1500

So your £25k is already down to £20k before you even take up a mortgage.

A £20k deposit means you're looking at properties around the £80k mark. Even in very derived areas of the North and Scotland, I doubt that are many properties floating around at £80k which needs zero work and you can get awesome tenants for.

After getting the mortgage and before having tenants, you will need to have an EICR completed, a legionnaires test and a gas safety check if the property has a gas supply. That's easily another £1k if there are no issues at all which is highly unlikely at that price point.

Then you need to set aside Oga Charlie's cut from the rental income. As you're already working, your tax free allowance is gone. So you'll be taxed at your standard tax rate on every penny that comes in as rent minus expenses.

Then you need to set aside monies for any repairs that tenants will throw at you.

You will also lose your first home buyer status which means when you come to buy your own home, you will be paying a hefty stamp duty tax as well.

Your experience in these matters dey trip me.

chimexview:
I greet everyone here and the founding fathers of this great, insightful and very educative thread. I salute men like Ticha,Semmyk, solumtoya, lexusgs430 and host of others in here.
To cut to the chase

🙏🏾

Another option is to buy a 3 bedroom house for yourself (not BTL), stay in one room and rent out two rooms. As family expands, you reclaim more rooms. This will help you avoid some of the pitfalls Ticha pointed out.

The money you're bringing from Nigeria should be in your account like one year before. While you'll be asked for 6 months statement, further inquire/explanation may require statements from previous months which will reveal the deposit from Nigeria if it's not further back in the statement. Explanation of the deposit from Nigeria will make you reveal you had a property (what other explanation would you give), this will make you loose your first home buyer's status and will then require you to pay stamp duty which is at least 5% of purchase price. This will be around £12,500 if the house is £250,000 . All the money you bring in from Nigeria don pass stamp duty go be that 😀

Viruses:


Another option is to buy a 3 bedroom house, stay in one room and rent out two rooms. As family expands, you reclaim more rooms.

This will help you avoid some of the pitfalls Ticha pointed out.

Illegally or legally........ On BTL mortgage or residential mortgage .........🤣😁

É go easy to comot doors and windows, if den no pay rent .........😄

Pearlyfaze:
Good morning ndi Ichie.
Please I like to know if I will be asked to bring a document to proof my address in Nigeria.

No you will not.

Lexusgs430:


Illegally or legally........ On BTL mortgage or residential mortgage .........🤣😁

É go easy to comot doors and windows, if den no pay rent .........😄

Legally on residential mortgage.

Is it not allowed to rent out some rooms?

Viruses:


Legally on residential mortgage.

Is it not allowed to rent out some rooms?

Legally, you would have to seek consent, from your mortgage provider.........

Can you guess the answer they might render........😁😄

The property is still owned by your lender...... Till you receive your property deed ........😜

And remember, it's called RESIDENTIAL mortgage.......😄

Lexusgs430:


Legally, you would have to seek consent, from your mortgage provider.........

Can you guess the answer they might render........😁😄

The property is still owned by your lender...... Till you receive your property deed ........😜

And remember, it's called RESIDENTIAL mortgage.......😄

He could take up a lodger. And the rent earned is taxfree upto 7.5k.

Also lodgers have less rights than tenants so the tenancy can be ended more easily.

Most banks wouldn't have issues granting a consent to let if need be.

Viruses:


Legally on residential mortgage.

Is it not allowed to rent out some rooms?

You are allowed to take a lodger and you don't need permission from the lender for one lodger. However, taking lodgers must not constitute converting your home into a HMO (3 or more unrelated persons) or a short term let although some lenders like Halifax and Nationwide will automatically allow a maximum short term let of not more than 12 weeks in any given year (there's a particular clause). Where these maybe breached, then you need permission which frankly is unlikely to be granted. The rent a room scheme is designed for home owners to take in 1 lodger rather than multiple ones.

It is important to ensure that taking a lodger does not earn you more than £7,500 annually. Any amount over £7,500 will incur tax and the lender is likely to see it as a wuru wuru HMO. See the rent a room scheme here - https://www.gov.uk/rent-room-in-your-home/the-rent-a-room-scheme

Another side way of getting your property rented out is to buy a residential home, live in it for 6 months or more then apply for a consent to let. This works better if you have a 5 year fixed rate. The CTL is a straight forward application, usually you pay a fee (Natwest is £150 flat rate) and it gets approved for as long as your fixed rate lasts. Some lenders will insist you change to a BTL once that fixed rate is over, others like Natwest will roll it over until you say stop!

A CTL gives you permission to rent out the house in full whilst still on a residential mortgage. Of course, it'll have to remain a repayment mortgage throughout. Our main UK family home has been on a CTL since 2017 and we have remortgaged twice since then. It's why the rate on that particular house is 1.1%!

jedisco:


He could take up a lodger. And the rent earned is taxfree upto 7.5k.

Also lodgers have less rights that tenants so the tenancy can be ended more easily.

Most banks wouldn't have issues granting a consent to let if need be.

But my point, is consent...... Right ...... Are we on the same page ......

But some lenders would also disapprove ......😁

My point is, don't just get a lodger without doing your due diligence.......

Ticha:



Another side way of getting your property rented out is to buy a residential home, live in it for 6 months or more then apply for a consent to let. This works better if you have a 5 year fixed rate. The CTL is a straight forward application, usually you pay a fee (Natwest is £150 flat rate) and it gets approved for as long as your fixed rate lasts. Some lenders will insist you change to a BTL once that fixed rate is over, others like Natwest will roll it over until you say stop!

A CTL gives you permission to rent out the house in full whilst still on a residential mortgage. Of course, it'll have to remain a repayment mortgage throughout. Our main UK family home has been on a CTL since 2017 and we have remortgaged twice since then. It's why the rate on that particular house is 1.1%!

Interesting.. didn't know this was possible.
Used to think one would need a BTL mortgage once the initial CTL ends.

A good loophole to rent out indefinitely on a residential mortgage

Peerielass:


LISA is meant to be for first time buyers. If you already own a home in Nigeria or elsewhere, I’m afraid you do not qualify to fund your UK house purchase through a LiSA. You can use the LISA as retirement savings.

That has not stopped hundreds of thousands of immigrants who own miniature properties back home from using a LISA towards their first property.

If one is moving in from Hong-Kong having sold a £300k property, then that's a different spirit from owning a 3million naira piece of land in ones village or a tiny bit of a family house. Ultimately, its for everyone to decide.

Lexusgs430:


But my point, is consent...... Right ...... Are we on the same page ......

But some lenders would also disapprove ......😁

My point is, don't just get a lodger without doing your due diligence.......

For the rent-a-room scheme the process seems pretty straightforward with tax advantages

The downside here is having to live with someone in your own space.

If its a high traffic area, Airbnb should pay higher but with more hassle

jedisco:


For the rent-a-room scheme the process seems pretty straightforward with tax advantages

The downside here is having to live with someone in your own space.

If its a high traffic area, Airbnb should pay higher but with more hassle

If one is prepared to trade their freedom, the reward must be juicy....... 😂

I love to roam semi nude, in my house...... 😉😂

On CTL, my mortgage provider used to charge £300 per annum for consent to let and it needed to be reviewed every year. This was a few years ago though so the process might have changed now.

jedisco:


That has not stopped hundreds of thousands of immigrants who own miniature properties back home from using a LISA towards their first property.

If one is moving in from Hong-Kong having sold a £300k property, then that's a different spirit from owning a 3million naira piece of land in ones village or a tiny bit of a family house. Ultimately, its for everyone to decide.

At the end of the day, we just need to highlight these things and as you say ultimately the final decision lies with the person.

If they happen to meet an over zealous mortgage advisor, and as already mentioned by Virus, they inadvertently reveal that their deposit is from the sale of a property in Nigeria, yawa don gas for them be that.

Hello everyone, I see some lenders like Nationwide advertising LTV of up to 95% for first time buyers. What are the possibilities of securing such an offer

ukay2:
FINALLY....

Completed today with Halifax at 5.3% 2 years fixed with a 15% deposit...Kent, SE England...

....keys in my hand....

To God be the glory....

Thank you everyone for the journey...1st August 2023 to 27th October 2023....

@Lexusgs430, thank you for reminding me that..... RENT MONEY is DEAD Money.....

We all shall get into the property ladder sooner than we think....just keep working daily...

Hello, congratulations 🎊.
Please can I ask how many years of residency in The UK you have?

Thanks 😊

Phayie:
Hello everyone, I see some lenders like Nationwide advertising LTV of up to 95% for first time buyers. What are the possibilities of securing such an offer

I would say that the chances are slim for Visa holders but no harm in checking with a Mortgage Advisor.

Thank you brother for the thoughtful advice, I will see if pounds will come down a little bit so I can bring in the money from Lemfi that’s the only way I know of for now.

Viruses:

Another option is to buy a 3 bedroom house for yourself (not BTL), stay in one room and rent out two rooms. As family expands, you reclaim more rooms. This will help you avoid some of the pitfalls Ticha pointed out.

The money you're bringing from Nigeria should be in your account like one year before. While you'll be asked for 6 months statement, further inquire/explanation may require statements from previous months which will reveal the deposit from Nigeria if it's not further back in the statement. Explanation of the deposit from Nigeria will make you reveal you had a property (what other explanation would you give), this will make you loose your first home buyer's status and will then require you to pay stamp duty which is at least 5% of purchase price. This will be around £12,500 if the house is £250,000 . All the money you bring in from Nigeria don pass stamp duty go be that 😀

Good Morning great minds.
Please I will need you to look at this and give me your thoughts. We are hoping to buy a property and the solicitor recommended by the developer gave us this quote:
Professional Charges

£375.00

VAT

£75.00

Searches (approx.)

£250.00

Stamp Duty or (FTB Relief)

£0.00

Electronic Client Identification Fee, including VAT (£15 per person)

30.00

Telegraphic Transfer Fee Including VAT

48.00

Land Registration Fee

£230.00

Lender Administration Fee Including VAT

180.00

Lender Panel Fee (if applicable)

42.00

HM Land Registry Searches

18.00

Anti-Fraud Check Fee

36.00

BACs fee

24.00

Lifetime ISA

£120.00

TOTAL

£1,428.00

So it was initially £1668, when I replied his first email, he removed £240 and gave me the above.
Please is this a good deal? Do solicitors charge for having our deposit in LISA?

Also our insurance quote by the Mortgage advisor is huge. Circa 120 for a 25 year deal term and both of us are 40years old.