Shall I risk buying for cash and no gearing in Shildon County Durham?

Shall I risk buying for cash and no gearing in Shildon County Durham?

7:59 AM, 24th December 2013, About 10 years ago 12

Text Size

Dear Readers,

I’m in a bit of a predicament, I’m currently looking at investing in property to let but a few years ago, I unfortunately got my hands bitten and am therefore am unable to get a mortgage due to poor credit and defaults etc.

I have a bit of money sat in the bank and have come to realize that if I buy north of the country, I could buy outright.

Could anyone give me any advice on doing so please? I know it has it’s possible pros and many cons but basically I just want to know if I’m going to make money or is it more hassle than it’s worth?

The area I’ve been looking at is Shildon, County Durham. Has anyone bought there before or own property there now that can give me advice or does anybody have knowledge of buying in areas that they are unfamiliar with?

Should I go for it or am I better off waiting for a couple of years until my credit is fixed and obtain a mortgage so I can buy closer to where I live (bearing in mind, house prices are at an all time low and are set to rise).

Any help and advice would be greatly appreciated.


Share This Article


Neil Patterson

8:11 AM, 24th December 2013, About 10 years ago

Dear Ryan,

What sort of Purchase prices are we looking at and would you be leaving yourself a healthy cash reserve for rainy day money? What sort of yield are you also targeting being available and type of property?

There are now lenders that will consider adverse credit, but the interest rates I have seen range from 10% -15% so I think you are wise to avoid these unless there is an extraordinary business case for the property in this area.

Si G

8:25 AM, 24th December 2013, About 10 years ago

Hello Ryan, Id advise you to buy for cash rather than borrow, believe one can buy tenanted property in this area giving yields of up to 15% (distressed sale), also suggest you buy under a ltd rather than yourself as this separates you and the business lastly look for reasonable connections such as road and rail which will suit prospective tenants if they are working and commuting, almost forgot manage the let yourself even if you need to travel a distance a few times a year, good luck.

Julie Dawson

8:28 AM, 24th December 2013, About 10 years ago

Hi Ryan, I live in the north east and have a portfolio up here as well as managing a good few. I must say I always pull a face when I hear shildon as there are some rough awful parts of it. Having said that ... My advice would be, If you do your research, view it, check out the neighbours and ring some agents, find out who rents in the street your buying as well, at least then you'll know if your buying in a decent part once you have all the "evidence". If your not local and would like someone to view it, give me a call !! Good luck

John Constant

9:53 AM, 24th December 2013, About 10 years ago

Ryan, you say that your problems were a few years ago. This is a question of degrees of adverse credit really. Yes there are some lenders who may charge 10-15% for very bad adverse credit, but there are also some lenders who would ignore adverse credit from a couple of years ago, even if it is still showing on your credit file. It depends on how bad it was. I work for HD Consultants and we are business partners of Property 118. If you would like to pass your email address to Neil, I am sure that he would be willing to pass it on to us to investigate, if that is the route that you would like to take.

Stephen Lesley

10:45 AM, 24th December 2013, About 10 years ago

Hi Ryan, I'm from the north east, near Shildon now living in Bristol. I have a friend from the North East who has a load of clients and his own portfolio of 65+ in similar areas. He was featured on Homes Under the Hammer recently. Buys and manages. Happy to connect you both if you wish. Hospital a few miles away could make Shildon a very nice rental.

Jeremy Smith

11:27 AM, 24th December 2013, About 10 years ago

Hi Ryan,

I didn't consider my own situation of buying for cash a predicament, nor a risk,
I've just done exactly what you're thinking of doing:

I'm basically just living on my rental income without my 'trade' bringing me in any income worth basing a mortgage on, so I decided to buy a property 'up-north' for cash instead of one down here around Cambridge with a mortgage, since I would have had to pay fees and had the trouble of justifying my income , etc...

My limited findings:
A different area than the one you found: Nelson and Darwen, just north of leeds, have houses on the open market for around £35k.
These areas, and others I would think, have lots of HB tenants:
Speaking to a letting agent there, she told me the HB for a 2 bed for example, a female with a child needs a 2 bed, is £80pw, therefore £350pcm.
- a good 10% pa return, even after you've taken off 10% for agent's fees.

I do all my work myself, so I'll be going up there to stay in the property whilst I do any jobs required, get to know the neighbours and perhaps one or two people I can ring to fix things if I need to.

- That's my plan anyway !!


14:49 PM, 24th December 2013, About 10 years ago

I know prices are much cheaper in the north i heard that Hull is a good area to buy and there is major infrastructure investment coming to that area, which will make it a more popular and desirable place to live in the next few years.
I also have poor credit at the moment but i need to remortgage one of my properties asap from a residential mortgage to a buy to let so if any one can recommend some one to me that could help me out i would be most appreciative.
Happy Christmas to all and wish you a great new year.

Si G

14:52 PM, 24th December 2013, About 10 years ago

Reply to the comment left by "Tony Church" at "24/12/2013 - 14:49":

Hello I can suggest a broker for b2let my email **moderated - unapproved soliciting - see business membership**

19:37 PM, 24th December 2013, About 10 years ago

we manage quite a few in shildon and buying in certain streets can make the world of difference. Certain ones are fine and then the next street is terrible. Do massive DD and make sure you speak to local agents and get their opinion, even phone up the council and see what they say

John Constant

8:00 AM, 25th December 2013, About 10 years ago

Reply to the comment left by "Tony Church" at "24/12/2013 - 14:49":

Tony, drop your contact details to Neil who will pass them on to us at HD Consultants, a business partner of Property118. We will be happy to assess your case, and to offer the advice that you need.

1 2

Leave Comments

In order to post comments you will need to Sign In or Sign Up for a FREE Membership


Don't have an account? Sign Up

Landlord Tax Planning Book Now