“The art market is always down when the property market is down,” explains the gallery owner Chris Beetles, “but the illustrators market is maintained by people for whom collecting is part of their life, rather than finding a picture to go with the mantelpiece, so they collect through thick and thin.
“Although people don’t like to talk about investment, the market is rising steadily. Very often these are less expensive and pitched at the first-time buyer.Ambition is to be admired. In this case, however, Fauzia’s ambition is way out of her reach for now.. innie the Pooh might seem like a dumb, honey obsessed, stuffed bear but, for those in the know, he’s anything but child’s play.

Investing in original children’s book artwork could turn out to be your pot of honey. If a joint buyer stopped paying their share of the mortgage, Fauzia could be liable for all of it. Also, the joint buyers would need sufficient income; in this case, probably in excess of £70,000 p.a.An alternative would be for Fauzia to consider a Housing Association property, continues Jackson. However, this can be fraught with danger as the borrowers are jointly and severally liable for the mortgage. If they can fund an 11 to 15 per cent deposit, some lenders would consider her current personal circumstances and she could expect to get a reasonably priced mortgage deal, such as 5.45 per cent fixed for three years.GUARANTOR LOANJackson says that if Fauzia is intent on buying a property, she has two options She could buy jointly with friends or family. On an interest-only mortgage, monthly repayments would be about £800; with a standard buy-to-let rental calculation of 125 per cent of mortgage payment, the valuer would have to agree that the property would fetch at least £250 per week rent.An option would be to involve her parents in the mortgage as a joint applicant or guarantor. Some lenders will base the lending decision on rental income, should she let the property in its entirety.

A loan this size will generate annual interest of £10,687.28, using a base rate of 1.5 per cent. And Fauzia must still meet the other costs of owning a property.She could choose to take permanent employment, suggests Clifford, in which case First Active or Freedom Lending might consider her as a buy-to-let borrower, but most lenders impose a minimum age of 21. She would need more savings than she has to cover fees, stamp duty and furniture.Fauzia’s most significant challenge is obtaining a 100 per cent mortgage, says Rob Clifford, as buy-to-let loans almost always demand a 15 per cent deposit at least.EMPLOYMENTFauzia simply does not now have the income to buy such a property, says Barrett. If Fauzia was relying on rent to pay the mortgage and the tenants defaulted, or she had a period when the flat was not tenanted, she could not make the repayments.

If she were to live in the flat, she may be prevented from letting all or part of it by the terms of the mortgage (though she may be able to take a lodger). Existing credit-card use and being a telephone user score points, but few 18-year-olds will have generated enough points.Colin Jackson agrees that Fauzia wouldn’t find a lender willing to grant a 100 per cent mortgage for a buy-to-let. If she chose a mortgage for her own occupation she has insufficient income before taking into account eventual liabilities such as her student loan. Some lenders will provide a more generous multiple of salary of anything up to five times income, but usually only for a lower loan-to-value multiple.Providing the applicant is over 18, all lenders use a credit scoring system that relies on the applicant scoring points for lifestyle and habits. Age doesn’t matter as long as the lender is satisfied there is sufficient income to meet repayments using its own lending criteria, usually three times income. By working weekends and holidays, she intends to save £3,000 a year in a high-interest savings account to pay back the fees.Fauzia wonders if it would be possible to obtain a 100 per cent interest-only mortgage while either letting out the property or living there and renting out a room.We sought the views of Kim Barrett of KS Barrett & Associates, Colin Jackson of Baronworth Investment Services and Rob Clifford of Mortgageforce.OBTAINING A MORTGAGEKim Barrett says it is possible to obtain a 100 per cent advance. From September, she will receive a student loan of £6,170 a year, a grant of £2,700 and a King’s bursary of £1,350.