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letting and buying?
rent_and_buy
Posts: 171 Forumite
Hi there people,first post so take it easy, i have read loads of info on here and we are currently in a dilema about renting our house, we have thought about it before, but now we are seriously considering it and have had permission from our lender.
Just wondering whether we can take the equity out of the house we want to rent out, to buy a residential property, the house we currently have we owe about 45,000 and it was valued last week at 150,000 pound.
any advice would be welcome
Just wondering whether we can take the equity out of the house we want to rent out, to buy a residential property, the house we currently have we owe about 45,000 and it was valued last week at 150,000 pound.
any advice would be welcome
0
Comments
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rent_and_buy wrote: »Hi there people,first post so take it easy, i have read loads of info on here and we are currently in a dilema about renting our house, we have thought about it before, but now we are seriously considering it and have had permission from our lender.
Just wondering whether we can take the equity out of the house we want to rent out, to buy a residential property, the house we currently have we owe about 45,000 and it was valued last week at 150,000 pound.
any advice would be welcome
Depends on your lender...
.... my lender (Intelligent Finance) WOULD give me "Permission to Let" (BUT at a hefty price). However they wouldn't allow me to realse any equity in the house (despite us having at least 75% equity!).
HOWEVER, I wen to spek to a mortgage advisor at LloydsTSB (they do Cheltenham and Gloucester Mortgages) about their "Buy to Let" mortgage (a nice 5 year fixed rate at 60% LTV) and he said that they would be very happy to allow us to realse that extra equity (either down to 60% LTV or even down to 75% LTV).
He was keen for me to start an application, but I haven't pursued that because, two days after my meeting with him, we went "under offer" again! Ideally we would like to sell, but letting out is still aback-up plan...
SO ask your current lender first, if they wont do it, speak to some Buy-to--Let lenders and/or an Independent Mortgage Advisor.
Good luck
QT0 -
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