What mortgage options are left? Please reply!

Prudent

With the rapid changes in the mortgage market I feel very out of touch.

Looking for a bit of help please

I have a house worth £130,000 -£140,000 outright.
I need to move as commute to new job far too long and no job options locally. The local housing market has very limited movement.

I have looked at houses nearer my place of work. I might get lucky and find the odd gem of an ex local authority house in a reasonable area at just around the £105,000 mark. I am mainly looking at houses similar to mine (3 bed semi, private estate) at around the same price or the more spacious ex LAs in decent areas at around £120,000. I have looked at 2 bed to try and reduce costs.

I have around £95,000 for deposit/ outright purchase. I would therefore need to borrow the balance including costs, so maybe up to £40,000.

Letting potential on my own house good and would get around £475 ish after agents costs (I want a managing service as I am a single parent with a demanding job).

Do buy to let mortgage still exist? Which house would be better to mortgage?

silvercar

Either, whichever one you choose the interest on the mortgage would be an allowable expense against the rental income. So from a tax point of view it makes no difference.

As for where you can get the best deal, residential mortgages are generally slightly cheaper than BTL ones.

herbiesjp

A £40k mortgage on a £130k property will be very straightforward on either a residential or BTL basis

At that mortgage level, interest rates will not have as much impact as the arrangement fees, so take care to weith those up when deciding which route to go down

Some would go for the BTL option as it means their own residence is mortgage free, whilst others wouldn't mind

Prudent

Thank you both.

I am going to give this a bump to see if the mortgage advisers come along with an idea of rates

herbiesjp

Prudent wrote: »

Thank you both.

I am going to give this a bump to see if the mortgage advisers come along

Ahem! :rotfl:

Prudent

Lol sorry - cam on in a rush and didn't noticed your sig

What sort of rates would I be looking at on the btl mortgage? Is it possible to get a variable rate without massive fees?

herbiesjp

Well you could start at rates around 5.49% - with varying fees

Depends on if you are looking for free legal fees and free valuation etc

ALso depends on what facilities you want from the mortgage itself.

Otherwise you could be looking at low to mid 6%s

Prudent

A priority is low fees and no tie in - even if that means a higher inital rate.

I was guessing at least 6.5 plus.

I have an income of £32,500 - is this enough?

herbiesjp

I doubt you are going to find a scheme that ticks all your boxes of requirements - in terms of low fees and no tie in in particular

So I think you will be better off discussing with a whole of market adviser, and let them come back with a deal that best matches your requirements

silvercar

Income is plenty for a residential mortgage of 40k. Rental income is also easily enough for that size mortgage. With a good credit rating you will easily find a mortgage, just a question of getting the best deal.

mshaw77

BTL mortgages are extremely exensive at the moment compared to residentials, you would be far better off taking out a residential Mortgage. The set up fees would be less and you would have a greater choice of lenders. If you own your current house outright why would you need a buy to let mortgage is this to raie the money to purchase the second property of which you are going to live in? Just checking or do you have £95K deposit plus your house you own outright? Your income is spot on for the 40K borrowing, the only thing is if you have any outstanding debts or adverse credit will effect the rates and lenders.

Prudent wrote: »

With the rapid changes in the mortgage market I feel very out of touch.

Looking for a bit of help please

I have a house worth £130,000 -£140,000 outright.
I need to move as commute to new job far too long and no job options locally. The local housing market has very limited movement.

I have looked at houses nearer my place of work. I might get lucky and find the odd gem of an ex local authority house in a reasonable area at just around the £105,000 mark. I am mainly looking at houses similar to mine (3 bed semi, private estate) at around the same price or the more spacious ex LAs in decent areas at around £120,000. I have looked at 2 bed to try and reduce costs.

I have around £95,000 for deposit/ outright purchase. I would therefore need to borrow the balance including costs, so maybe up to £40,000.

Letting potential on my own house good and would get around £475 ish after agents costs (I want a managing service as I am a single parent with a demanding job).

Do buy to let mortgage still exist? Which house would be better to mortgage?