Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • buster1986
    • By buster1986 9th Sep 17, 9:52 PM
    • 4Posts
    • 0Thanks
    buster1986
    Let to buy dilemma
    • #1
    • 9th Sep 17, 9:52 PM
    Let to buy dilemma 9th Sep 17 at 9:52 PM
    Hi

    I have read through the forums and not been able to find an answer that fits my scenario. I would really appreciate some help and advice.

    My current property is worth 95 - 100K. I have a remaining mortgage of 25K on this. I would like to rent this property and buy another property to live in (140k price range). I have a deposit of approx 15k. Joint income of 35k but partner has a satisfied default. This falls off in 2019. My income on its own is 21k. Is this possible or just a dream? Any other options?

    Any feedback welcome. Apologies for the long email.

    Thank you
Page 1
    • ACG
    • By ACG 9th Sep 17, 10:39 PM
    • 15,785 Posts
    • 8,078 Thanks
    ACG
    • #2
    • 9th Sep 17, 10:39 PM
    • #2
    • 9th Sep 17, 10:39 PM
    It is possible yes.
    Have you accounted for the higher rate of stamp duty on the new property? (Approximately £5-6k as a bit of a ball park guess).

    You would probably be wise to speak to a broker as depending on the details of the default, it may not be for every lender.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • getmore4less
    • By getmore4less 10th Sep 17, 8:42 AM
    • 30,302 Posts
    • 18,118 Thanks
    getmore4less
    • #3
    • 10th Sep 17, 8:42 AM
    • #3
    • 10th Sep 17, 8:42 AM
    SDT
    £120k £3,600
    £130k £4,000
    £140k £4,500
    £150k £5,000
    • buster1986
    • By buster1986 10th Sep 17, 8:58 AM
    • 4 Posts
    • 0 Thanks
    buster1986
    • #4
    • 10th Sep 17, 8:58 AM
    • #4
    • 10th Sep 17, 8:58 AM
    Thank you for the responses. How would a let to buy mortgage work in simple terms? Is it 2 separate mortgages or 1 mortgage but both properties are mortgaged under it? Any brokers reccomended?
    • ACG
    • By ACG 10th Sep 17, 10:46 AM
    • 15,785 Posts
    • 8,078 Thanks
    ACG
    • #5
    • 10th Sep 17, 10:46 AM
    • #5
    • 10th Sep 17, 10:46 AM
    One mortgage for the existing property (basically a BTL), one property for a new mortgage (a residential mortgage).
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • buster1986
    • By buster1986 11th Sep 17, 11:42 AM
    • 4 Posts
    • 0 Thanks
    buster1986
    • #6
    • 11th Sep 17, 11:42 AM
    • #6
    • 11th Sep 17, 11:42 AM
    If the second property was in my partners name, would that still incur the stamp duty?
    • stu2500
    • By stu2500 11th Sep 17, 5:02 PM
    • 126 Posts
    • 17 Thanks
    stu2500
    • #7
    • 11th Sep 17, 5:02 PM
    • #7
    • 11th Sep 17, 5:02 PM
    I'm in a similar scenario and we went through a broker, currently have our mortgage approved (subject to survey) and we used Natwest. They gave us more favourable affordability and allowed for 95% LTV.

    I don't think you'd incur stamp duty if it was just in your partners name, but would the affordability match up to get a £140k mortgage? I would highly recommend using a broker for this, I've been really happy with ours.
    • buster1986
    • By buster1986 11th Sep 17, 5:38 PM
    • 4 Posts
    • 0 Thanks
    buster1986
    • #8
    • 11th Sep 17, 5:38 PM
    • #8
    • 11th Sep 17, 5:38 PM
    How much let to buy mortgage could I potentially get?

    25k existing mortgage
    15k deposit
    Joint income 35k

    Just after a rough ballpark figure, not sure what the multiples are for a let to buy mortgage.
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

888Posts Today

6,609Users online

Martin's Twitter