Mortgage & Buy to Let Advice Please

ksmith08

Good day all

we have a small 2-bed house in a university town in cornwall (with 60k remaining on a fixed rate mortgage. worth around 150k), a four bedroom student house in the same town (on a five yr fix with student tenants) and are expecting our second baby in a space of sixteen months. It's all go!

We are considering moving to a house with a driveway and a garden and a third bedroom upto £220k. My problem lies in the financing of such a move.
Do i try to keep all properties and have two student letts?
I know that i could transfer our residential mortgage of upto 100k with teachers BS and add another loan with them onto this (not great rates though).
I can stick our current house onto a buy to let with the likes of mortgageworks or mortgage trust and use equity release to fund a deposit. or!!!! should i aim to sell our current property to lower the liability? With baby due in july i aint in a position to hang about if i do agree to move.

Any advice would be appreciated, i am aware of the uncertain times we're in finance-wise, and i am also aware of a buoyant, local student rental market but the missus wants easier parking!

silvercar

If the rental income on the let properties clearly covers the mortgage on them, most lenders will ignore them for mortgage purposes.

Now look at your current home. Is it suitable for renting? Would the rental income cover the mortgage and allow for extra necessary? If so then you could consider letting it and release something for a deposit BUT the figures need to stack up on it (rental income vs enlarged mortgage payments) and you need sufficient income to get the residential mortgage on the new place.

Student lets are a different area than residential lets and you don't want to be left with 2 mortgage to fund and no tenant.

Unless you have a vast portfolio of investments elsewhere, I would think that you would be better to sell your current home and buy your new one. Just because you have other BTLs, doesn't mean that this one fits the bill.