how much

confused31_2

i think maybe my sums might have been a bit wrong but ill find out tomorrow when i speak to them again, i would still have to pay the 76000 pound back aswell, which would be on top of my current mortgage and any new mortgage so the payments would be higher than what we would want to pay.

Cheers for the help people

getmore4less

silvercar wrote: »

So your total borrowing will be 126,000 on 150,000 valuation ie over 75%.

Who is this lender that is allowing BTL with less than 25% deposit and MEW for property purchases????

perhaps they were saying a total of £76k (50%LTV) not £76k more.

confused31_2

getmore4less wrote: »

perhaps they were saying a total of £76k (50%LTV) not £76k more.

No they was going to let me take the 76000 equity out of my current house and lend me the rest, but to be honest i will not take the risk, we could afford it but it would be very tight and im not going to put us in that situation with the way things are.

Basically i would have been paying 126000 pound back on my current property and 105,000 on my new property, they said we could have borrowed 151000 additional if we wanted :shocked:which is far too much for us to borrow, especially like someone said both houses will be losing money at the same time.

i think i will just have to be patient and wait for things to develop, hopefully come the summer things might have changed.

lil'H

if you can make it work i'd see why you'd go for it but one thing to bear in mind. You can rent out for thrre years on current mortgage deal, what if interest rates are 10% in three years time. You'd be paying 12000 a year in interest only on the house you were renting out. Could you afford this? Depending on how long you can fix your new house for you could have similar problems with that mortgage, and in 3 years time find yourself with mammouth costs and forced to sell.

silvercar

Sorry this doesn't add up, no-one is doing 75% on BTL. Lenders are not keen at the moment on releasing any equity for BTL.

Who is the lender?

confused31_2

silvercar wrote: »

Sorry this doesn't add up, no-one is doing 75% on BTL. Lenders are not keen at the moment on releasing any equity for BTL.

Who is the lender?

Nationwide like i told you before, it dont matter now anyway, they said they would only do it if the other home was residential and that it would only be one property.

Plus they wouldnt be releasing money for us to to buy to let, they were releasing the money for us to buy a home and letting us with our current mortgage deal, rent our other home out for three years, i think this has something to do with, living in the house you are renting out and selling it within 3 years.

We are not going to do it,ive spoke to the letting agent and told them to leave it, maybe if house prices fall further we may consider it, but like you said earlier i dont really want to start mewing.

if my property comes down to 100,000 pound, i would definately consider it as we could just get a mortgage for 150,000 and not borrow anything additional from our current property.

But it seems pointless the way things are, so we are just going towait and see what happens.

lukekelly_2

Financially i will be the same but in ten years time i will own one house and be half way to owning another.

This really isn't true, and that's what people have been trying to get at. This post gives some simple but very useful analysis of the scenarios in which you'd be better off doing as you plan to do and the scenarios in which you'd be worse off. In some interest rate and mortgage outcomes over the next ten years you would be substantially worse off. Your general position looks good so it sounds likely you could cope with most such losses, and it's probably significantly more likely that you'd come out well as in the scenario you post as certain. But do be aware that you're taking a larger risk by doing this rather than just selling your old house and buying a new house. It might be the right risk for you, only you can decide that, but you need to be aware that you're taking risks otherwise you have no way to make an informed decision.You are in this to make money, whether in the form of long-term capital growth or monthly income, and as such you need to analyse that money.

confused31_2

Ive deicided i will not be doing it, so were going to sit back and relax, if we sell fine if we dont then we will just have to stay where we are for the time being.

its just the waiting that does our heads in a little bit, but i suppose we should be happy that we are lucky enough to be in the position we are at the moment.

socrates

confused31 wrote: »

Ive deicided i will not be doing it, so were going to sit back and relax, if we sell fine if we dont then we will just have to stay where we are for the time being.

its just the waiting that does our heads in a little bit, but i suppose we should be happy that we are lucky enough to be in the position we are at the moment.

After all your theories about YOU buying, renting, selling and how easy it would be to purchase a second property - your theories about people with cash buying properties outright, all your theories about ftb's scrambling over each other to buy properties.

FINALLY the good old Nationwide has told you that you are not in a position to do anything.

In fact everyone and his dog has told you this countless times - you argued, flamed made derogatory comments. You advised countless other posters of what to do. You do not even have a grasp of your own finances. This thread CLEARLY proves that.


At the end of it all you did exactly what I told you you would do - a big fat NOTHING!!!!!

socrates

Silence is golden!