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    • MichaelF1981
    • By MichaelF1981 30th Nov 17, 12:37 PM
    • 3Posts
    • 0Thanks
    MichaelF1981
    Buying a second home to live in
    • #1
    • 30th Nov 17, 12:37 PM
    Buying a second home to live in 30th Nov 17 at 12:37 PM
    Hi Guys,


    I bought an apartment back in 2007, just before the crash and the investment has never recovered. Other apartments have sold for £35k less than what we paid for them all those years ago. I moved out a few years back and bought a very cheap house with my now ex girlfriend. Move on to present, I have moved back in to my apartment and my ex bought me out of the other house. I really don't want to stay in the apartment as it is far too small, I also do not feel comfortable selling for £35k less than what I paid 10 years ago. I do have a little equity in the apartment but not a huge amount.


    I am on a good salary and would really like to buy another house to live in while renting my apartment out. Looking at mortgages, I would require a 25% deposit as I already own a home, meaning I would need a £50-60k deposit for the type of house I would like. Is it possible to take out a buy to let mortgage on my apartment in which I borrow 75% and on the new house take out a 90-95% LTV mortgage?


    Can anyone offer advice on the situation? Am I better admitting defeat on my apartment and getting rid? Any other avenues I can explore? I really don't want to rent somewhere.


    Thank you in advance


    Michael
Page 1
    • 00ec25
    • By 00ec25 30th Nov 17, 12:46 PM
    • 5,532 Posts
    • 4,916 Thanks
    00ec25
    • #2
    • 30th Nov 17, 12:46 PM
    • #2
    • 30th Nov 17, 12:46 PM
    you have not once mentioned if you want to be a LL.
    being a LL is more than just sitting at the end of an income stream...

    as for mortgage options, read this similar thread from yesterday
    http://forums.moneysavingexpert.com/showthread.php?t=5751814
    • Slinky
    • By Slinky 30th Nov 17, 12:57 PM
    • 4,758 Posts
    • 20,753 Thanks
    Slinky
    • #3
    • 30th Nov 17, 12:57 PM
    • #3
    • 30th Nov 17, 12:57 PM
    Don't forget that if you buy a second home, you'll have to pay the extra 3% stamp duty which you will only be able to claim back if you sell the flat within 3 years. In which time your loss on that may be more or less than the current £35K.
    • kingstreet
    • By kingstreet 30th Nov 17, 1:14 PM
    • 32,358 Posts
    • 17,366 Thanks
    kingstreet
    • #4
    • 30th Nov 17, 1:14 PM
    • #4
    • 30th Nov 17, 1:14 PM
    I would require a 25% deposit as I already own a home, meaning I would need a £50-60k deposit for the type of house I would like. Is it possible to take out a buy to let mortgage on my apartment in which I borrow 75% and on the new house take out a 90-95% LTV mortgage?
    Originally posted by MichaelF1981
    You don't need a 25% deposit for your onward purchase.

    It sounds like you don't have enough equity in the current property to borrow anything above what you current owe so consent to let from your current lender might be the best you can do.

    Your new residential lender will ignore the cost of the let property/mortgage if it's considered self-financing and a broker would be the best place to start finding out your options.
    I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.
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