Getting a Mortgage

Getting a mortgageSo we’ve decided not to move to Spain for a few years but we are instead going to move back to where I am originally form to be closer to family and friends while the baby it young. Therefore I am trying to get a mortgage to buy a new house. It should be fine as I have no other debt on credit cards or loans and I think on paper I’m a pretty low risk candidate. The only issue is that I am already listed on another mortgage which is currently on my parents house. We used the money to buy another house which is currently rented out and this more than covers the mortgage as it stands so there is also other income to consider from that. The main issue I’ve had is trying to explain the whole situation to the lenders.

Luckily we know a few people that work in a building society and we’ve managed to explain the whole situation to them and they are looking into our various options for us. Ideally I would like to get a residential mortgage however failing that there is the option of re-mortgaging the house we currently rent out and getting a but to let mortgage. The only issue with doing it that way is that the interest rate on a buy to let is always going to be higher than a residential. The third and final option is to kick out the tenants that currently rent the other house and move back in there for a few years.

To be honest the cheapest option would be to move back into the rented house but I would rather try and buy a new place as I think it’s a great time to be buying a house at the moment. There are signs that the housing market is starting to pick up and I think in the next ten years we will be seeing some significant rises in house prices, all before another bust. In fact I remember reading some research quite a while ago that showed the housing market running on an 18 year cycle. That was 4 years of decline and levelling out of the price, and 14 years of growth. Now the last bust has lasted a little longer than 4 years it’s more like 5 or 6 but I think if I can buy a house now and hold onto it for the next 10 years or so then I should be in good shape when I come to sell up.

Moving to Spain is still on the cards but it will not be for another few years. I am wanting to do some building work on the house we have in Spain and the plan was to contact this out to a builder due to time constraints. However now I have some extra time I will be looking to do as much of the work, as I can, myself. This will help keep the costs involved there to a minimum and will be better for us in the long run.

Hopefully I will get the mortgage and I should be finding out more later today so I’ll be sure to keep you all up to date with how things progress. Since I’ve been doing some research into mortgages I figure I will start a new mortgage section to help explain them to people that might need to get a better understanding, so keep checking back for updates on that.

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