Mortgages

[JamesJohnston02]

Hi,

I'm new to this site and think it's amazing!

Me and my brother are hoping to buy and run a Residential Home for the elderly after we finish University.
Most residential home properties cost around the £600,000 mark, and as we are students have no money and no assets to use as security when it comes to obtaining a mortgage.
Can anybody out there, who knows about mortgages, please tell me whether it would be possible to use the property you hope to pay off from the mortgage as security?
Most mortgages require a deposit of around 15-25%, is it possible to obtain another loan to cover this amount?

Are we correct in using a Mortgage rather than a Business Loan?

One last thing- Would we find it difficult to find funding due to the lack of assets??

Thanks!

[cdfinserve]

I would have to have a look at the ase in detail

But risk wise - residential homes are high risk investments

you will have to find 20-30% deposit

[JamesJohnston02]

Thanks for the reply.

Would it still be high risk if me, my brother and sister (if she wants in) all got a job so that we would have a combined income of around £60,000 per year, so we can ensure we are able to pay off the mortgage each month?
Would banks look upon this favourably??

Thanks

[www.infoebookstore.co.uk]

The property itself will act as security, but even if you find the deposit £120,000 at 20%, you will need to prove you will be able to pay the mortgage.

at 6% you will need to prove that you will be able to pay back approx £3000 per month just on the mortgage let alone any other (I expect rather high) costs of running this sort of home.

I am not a financial adviser and I only have experience of private residential mortgages, but I would have thought there would be better ways of investing the £120000 deposit!

Good luck.

edit: Just noticed this comment - "have no money and no assets", in this case I would think this would be a non starter, sorry.