Im a civil servant earning 40k. Bought an 'affordable house' from the council 7 years ago. Valued at 315k (yeah right), bought for 155k, still 126k outstanding on that, which coincidentally is approximately what it's worth. Mortgage repayments are 600 per month at the moment.
Partner is a permanent teacher earning 40k. No loans.
Combined savings of approx 10k. Gift from parents of 30k.
To let the apartment, rental in the area should me get 850 per month. We've been told banks don't take rental income into account, which is a kick in the teeth.
We want to buy a house now, get married and start a family.
We've spoke with a financial advisor and what he says a bank would be willing to give us would not be enough to buy anything near what we'd be after (which is modest enough) and we'd be better off staying in the apartment to be honest.
Has anybody any experience in trading up and what did you do with the apartment. Is there any way of showing the banks a long-term letting arrangement and persuading them it's secure? Anything else you think we could look into.
We'd like to buy before the end of the year to avail of the interest relief. I know our savings aren't much, we haven't really been thinking of saving or anything like that, only we got engaged earlier in the year and have started to get our serious heads on now.
Thanks for reading any advice would be great.