buying 2nd place, mortgage help required please

longwalks1

I currently have 19 years left on a mortgage of £105k, with 4 years remaining with First Direct fixed offset at 4.99%. Property valued at £140k

Have £26k in my savings account, so its offsetting my mortgage so I only pay interest on £79k mortgage.

Would like to buy a second place if its possible (up to £120 or £130k) that needs work and do it myself while living in there, is this:

A) A good idea at present
Able to do mortgage wise.

I’m currently renting my spare room in my place I have now for £350pcm which helps greatly, ideally Id like to rent my current place out fully and once my new place is done, rent a room out in there also. I’m guessing the only way this is possible is to re-mortgage my current place as Buy To Let and get a normal mortgage or port my FDirect one across to the new place.

Any advice or suggestions greatly appreciated

dimbo61

Whats your income and can you afford 2 mortgages ?
Most BTL mortgages now need a 25/30% deposit and very good return on mortgage IE rent must be over 125% of mortgage cost + fees ( insurance, agents fees, gas/electric checks, fees for setting up mortgage, repairs, empty periods ( no income ! ) etc )
Its very tough in the BTL market with lenders pulling out all the time.
You have a good mortgage deal and reasonable savings just keep saving into the offset until savings equal mortgage balance then think about second property.