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  • FIRST POST
    • thehoorays
    • By thehoorays 29th Nov 17, 9:06 PM
    • 1Posts
    • 0Thanks
    thehoorays
    Help! Moving from first home. Mortgage dilemmae
    • #1
    • 29th Nov 17, 9:06 PM
    Help! Moving from first home. Mortgage dilemmae 29th Nov 17 at 9:06 PM
    Hello All,

    I am in a right quandary. The preamble is this:

    2 years in to a 5 year fixed rate mortgage on our house in the south east.
    Job relocation to the north west as of January 2018.
    £185k left on mortgage with property valued at £265k

    Originally our plan was just to sell up down here, port the mortgage to a new property up there and be done with it.

    However, it seems a shame to give up a house in an area where prices are currently rising (and probably will for a long time yet).

    Im not really sure how feasible it would be to keep this one and get a second property, not even sure how the process works.

    Any help/advice much appreciated!
Page 1
    • getmore4less
    • By getmore4less 30th Nov 17, 5:16 AM
    • 30,781 Posts
    • 18,387 Thanks
    getmore4less
    • #2
    • 30th Nov 17, 5:16 AM
    • #2
    • 30th Nov 17, 5:16 AM
    First decide if you want to become a remote landlord.
    think about if you want a letting business and or a property speculation.

    Then look at the place you have and work out the business plan,

    Start with gross yield. will it generate enough cash to at least wash its own face with cash flow so it doesn't become hungry for your money.
    think about your future CGT bill, although if you have lived there that could be some way off.

    Then work out how you raise a deposit for the new place.
    (there is only about £10k to squeeze from the current property with a remortgage)
    then look at how much more the mortgage is costing because you have a higher LTV and see if the business still has enough cash to cover that.

    Then look at how much nicer a place you could have bought if you did not have the rental using £70k of your capital
    • YHM
    • By YHM 30th Nov 17, 9:59 AM
    • 303 Posts
    • 98 Thanks
    YHM
    • #3
    • 30th Nov 17, 9:59 AM
    • #3
    • 30th Nov 17, 9:59 AM
    As above. Sounds like you need to convert your current residence to a BTL and then look at a new mortgage up north.

    A good broker will be able to help you with all this
    I am a Mortgage Broker.

    You should note that this site doesn't check my status as a Mortgage Broker, 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
    • FTBuyerGlasgow
    • By FTBuyerGlasgow 30th Nov 17, 10:44 PM
    • 17 Posts
    • 13 Thanks
    FTBuyerGlasgow
    • #4
    • 30th Nov 17, 10:44 PM
    • #4
    • 30th Nov 17, 10:44 PM
    Looks like you'd be just under 70% so a BTL "switcheroo" seems possible, it all depends on the other property you want to buy and the affordability.

    I'd also echo the point above about being a remote landlord, sounds like you'll have to go the route of a management company.

    Also worth considering how a job switch/relocation will look to a prospective lender, if it's an internal move might not be too bad but if it's with a new company (a new job basically) it might not be too appealing.

    Good luck with your plans.
    Started out with nothing, still got most of it left.
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