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How Can I Rent My Home And Buy Another?
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cherrubbles
Posts: 3 Newbie
i have a mortgage 110.000,have 70,000 colateral, want to rent this house out and also buy another for 180.000 to live in.
do you think i will get another mortgage, if so what kind of deposit will i need, earn 30.000k yr
do you think i will get another mortgage, if so what kind of deposit will i need, earn 30.000k yr
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i ve done it - don't do it, not at present you will be ripped off left, right and centre. i have 2 homes in the uk and 2 abroad( cash bough abroad). it was easily do able before the credit crunch i think you have missed the train a bit... just wait it out, it will pick up again. no matter what you do do not touch the mortgage market at the moment, but an answer to your q - yes you can buy to let your home use the equity for a deposit and rent out your old home, it is a standard buy-to let precedure. mortgage express used to be excellent,at the moment there are no products on the market that favour the landlord, so for now- FORGET IT! SERIOUSLY...cherrubbles wrote: »i have a mortgage 110.000,have 70,000 colateral, want to rent this house out and also buy another for 180.000 to live in.
do you think i will get another mortgage, if so what kind of deposit will i need, earn 30.000k yr0 -
Mortgage express are owned by B&B, so no surprise they've pulled out!
You could get consent to lease from your current lender to let your current home. If not, or if you need to pull money out of it you will need to get a BTL mortgage on it. If the rental income can justify it you can take an 85% LTV mortgage, so 153k mortgage. Though you could find that the rental won't be enough to justify that. If you had a rental income of say 750 a month, you would be able to get a mortgage of around £140k. The 30k released could go towards a deposit on the new place.
Most lenders will ignore BTL mortgage if the rental income is enough to cover it.
On an income of 30k you are unlikely to get a mortgage of more than 120k at decent rates.
Not saying you should do this, just giving an idea of how the figures pan out if you decide it is for you.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
i am covered till nov 2010 with a 4.74% mortgage on my buy to let by mortgage express - frankly i am horrified over what is going to happen after that if the credit crunch does not better by then... 8.9% ...no thanks..Mortgage express are owned by B&B, so no surprise they've pulled out!
You could get consent to lease from your current lender to let your current home. If not, or if you need to pull money out of it you will need to get a BTL mortgage on it. If the rental income can justify it you can take an 85% LTV mortgage, so 153k mortgage. Though you could find that the rental won't be enough to justify that. If you had a rental income of say 750 a month, you would be able to get a mortgage of around £140k. The 30k released could go towards a deposit on the new place.
Most lenders will ignore BTL mortgage if the rental income is enough to cover it.
On an income of 30k you are unlikely to get a mortgage of more than 120k at decent rates.
Not saying you should do this, just giving an idea of how the figures pan out if you decide it is for you.
that's why i do not think ANYBODY should encourage business on buy to let while the offers are so poor. please wait it out!!!!!!!!!!!!0 -
sunnybubble wrote: »i am covered till nov 2010 with a 4.74% mortgage on my buy to let by mortgage express - frankly i am horrified over what is going to happen after that if the credit crunch does not better by then... 8.9% ...no thanks..
that's why i do not think ANYBODY should encourage business on buy to let while the offers are so poor. please wait it out!!!!!!!!!!!!
Where do you get the figure of 8.9% from?
Currently Mortgage Express offer the following variable rate deals:
Full status – Bank of England Base Rate + 2.14%Non status – Bank of England Base Rate + 2.39%
http://www.mortgage-express.co.uk/pdf/BTL_Flyer_May30.pdf
BoE base rate is currently 5%
and fixed rates varying from 6.74% (discounted) to 7.99% (non-status)
http://www.mortgage-express.co.uk/pdf/CoreProductRange.pdf"Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100 -
ok it was just a guess for 2010 - just being a pessimist.
i still think the offers are pretty poor, compare 4.74%from couple of years ago( or even pre credit crunch) to what did you say? 7.24% that 's hundreds of £ thrown out the window in the uk, 1000s round london....+ plus to top it they will wack you with massive arrangement fees( round £4000.00 on a standard mortgage)-but of course sombody needs to pay for the mistakes the banks made in the US.... lets all volunteer!!!!0 -
From 6.74%sunnybubble wrote: »...compare 4.74%from couple of years ago( or even pre credit crunch) to what did you say? 7.24%...
Petrol prices a few years back 85p per litre. Today about 119p per litre. Price in 2010? Who knows?
Average house price in 2004? About £150k. Average house price today? About £180k. Average house price in 2010? Who knows?
BoE base rate Jan 2004? 3.75%. BoE Rate today? 5.00%. BoE rate in 2010? Who knows?
RPI Apr 2004? 2.5%. RPI today? 4.6%. RPI 2010? Who knows?"Now to trolling as a concept. .... Personally, I've always found it a little sad that people choose to spend such a large proportion of their lives in this way but they do, and we have to deal with it." - MSE Forum Manager 6th July 20100
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