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How to maximise purchasing power?
amcluesent
Posts: 9,425 Forumite
So, I'm binding my time until late summer 2009 before purchasing an HPCed property in London.
Just wondering how to maximise my purchasing power.
Based on earnings, I have been offered a mortgage of £230k
Deposit saved £100k
Realistic value of current house (mortgage free) approx. £100k
So say £400k to spend after fees, which isn't really enough. :eek:
However, if I didn't sell up, net rental income from current house would be £400/m and I'd get a two bed/bath in London, so lodger would be adding £600/m.
How can I leverage that income of £1000/m, to 'top up' the £300K? I suppose I need a 5*income mortgage?
Just wondering how to maximise my purchasing power.
Based on earnings, I have been offered a mortgage of £230k
Deposit saved £100k
Realistic value of current house (mortgage free) approx. £100k
So say £400k to spend after fees, which isn't really enough. :eek:
However, if I didn't sell up, net rental income from current house would be £400/m and I'd get a two bed/bath in London, so lodger would be adding £600/m.
How can I leverage that income of £1000/m, to 'top up' the £300K? I suppose I need a 5*income mortgage?
0
Comments
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Get a BTL mortgage on your current home. That will give you an extra 60k (say) to add to your deposit on your new home.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
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