Tired of rent draining your £25k salary? Buy a £72.5k Blyth terrace with £3,625 down and earn £5k+/year from an HMO—your wealth-building journey starts now!
Hey investors, gig workers, first-time buyers, and low earners—Uber drivers on £25k, delivery folks, or anyone dreaming big—think homeownership or passive income is out of reach? Wrong! With North East prices averaging £188k (35% below UK £285k per Plumplot, July 2025), and 5% deposit schemes, you can buy a £72,500 terrace like today’s Blyth gem and pocket serious cashflow. This guide breaks down the full cost of buying and how much you’ll earn from HMO or BTL, using monthly/yearly salary. Get ready to act—thousands are buying in 2025, and Mike Bells is your trusted partner to source BMV deals. Watch our video for more: https://youtu.be/IywTdYKncqY.
Step 1: Affordability Check
- Salary Needed: On £25k yearly (£2,083/month), borrow up to £112,500 (4.5x salary, MoneyHelper calculator). For £72,500 property, need £3,625 deposit (5%) + £1,900 fees (survey £400, conveyancer £1,000, stamp duty £0 under £250k first-time). Total outlay: £74,400. Monthly salary £2,083 covers £360 mortgage (4.8% on £68,875 loan) + £200 bills. Gig workers: Show 2 years’ accounts. Expats: Skipton accepts overseas income. Save £500/month = deposit in 8 months.
Step 2: 5% Deposit Mortgages
- Schemes: Mortgage Guarantee Scheme (GOV.UK, 2025) offers 95% LTV, rates 4.5-5.5% (Nationwide). Deposit Unlock for new builds (5% down). Shared Ownership: 10% share (£7,250). Monthly: £360 on £68,875 loan fits £25k-£30k earners. Low earners: Key Worker schemes (NHS discounts).
Step 3: Target Low-Cost Gems
- Focus: NE24/SR1 flats or terraces £70k-£100k (Rightmove). Auctions for BMV (10-15% off). Full cost: £72,500 + £1,900 fees = £74,400. Story: A £28k driver bought a £80k Sunderland flat—5% down, now earns £6k/year BTL.
Step 4: Build Your Case
- Boost credit, get MIP (free). Gig workers: Show accounts for stability. Expats: Currency hedges via brokers like Coreco. Earnings: £25k year affords £112k borrow, fits £72.5k buy.
Step 5: Post-Buy Earnings
- HMO: Refurb £25k (kitchen £8k, bath £5k, fire/plumbing £7k, decor £5k). Rent: £350/room x3 = £1,050/month (£12,600/year). Costs: Licensing £500, maintenance £1k, insurance £300, management £1,512 (12%). Net: £9,288/year (£774/month). Yield: 12.8% post-refurb. ROI: 25% on £23k deposit.
- BTL: Rent £750/month post-refurb (£9,000/year). Costs: £2,792 (maintenance, insurance, management). Net: £6,208/year (£517/month). Yield: 8.6%. ROI: 20%. Story: A £30k investor bought a £75k terrace—HMO nets £8k/year.
Mike Bells sources BMV deals to build your trust—partner with us to grow your portfolio!
Unlock the secrets to affordable buying with our weekly North East insights, landlord hacks, and deal alerts. Join 1,000+ ambitious buyers in the Mike Bells Property Sourcing Newsletter—pure gold, no fluff. Sign up free and own your future!