Getting the deposit together
Prices in Bootle are lower than in much of Liverpool, so the monthly payment is often manageable. The harder part is usually the deposit.
Lenders talk about loan to value, or LTV: the mortgage as a percentage of the price. Put down a 5% deposit and you’re borrowing at 95% LTV. Some lenders will consider that, though the choice is narrower than with 10% or more and the checks are tighter.
If family are helping, lenders usually want a letter confirming the money is a gift, not a loan, and they’ll check where it came from. There are other ways family can help too. Tell me who’s helping and how, and I’ll explain what lenders generally accept.
Leasehold houses
In this part of the North West, plenty of houses are leasehold, not just flats. That means you own the house for a set number of years, called the lease, and pay a ground rent to whoever owns the freehold.
A long lease, like 999 years, rarely worries a lender. A shorter one can. Some lenders won’t lend if too few years are left, and extending a lease costs money. A ground rent that keeps going up can also be a problem. Your solicitor will check the lease, but it’s better to know before you make an offer, so tell me about the lease as soon as you find a house.
Being ready before you view
You’ll often be up against landlords for the same houses, and sellers tend to pick the buyer who’s ready to go. My aim is to get you a decision in principle before you view. That’s a lender’s early indication of how much they’d be willing to lend you, based on a quick look at your income and credit file. It shows the agent you can proceed.
If you’re a landlord
Buying to let works differently. The lender looks mainly at the rent the property will bring in, not just your income, and you’ll usually need a bigger deposit. My buy-to-let page explains how it generally works, and my guide Your First Investment goes through it step by step.
Meeting up
I can meet you face to face in Bootle, or we can talk on Zoom or a WhatsApp call.
If it’s your first home, my guide Your First Home explains the whole process, from deposit to keys.