Advice required; difficult to sum up in a subject!

RobMolyneux

Hi, and thanks in advance for any help you can offer. I am planning to see a mortgage advisor in the coming week or two but thought this a good place to ask a question.

Our situation is this;
My fiancee and I put our house up for sale in July 07 and have been unable this far to sell. We currently need to sell as we are looking to relocate to another part of the country, otherwise we would just sit tight until times have improved.

We get married in 10 weeks, and see that as the time to really try and make this move.

Our house is now valued at £110k, and our mortgage value is still currently £100k. So £10k equity. We have somewhere in the region of £23k in savings.

Our mortgage is approx £500 and we have been told some time ago that we could rent it out for a similar amount.

Are we in a position where we could change our current mortgage to buy to let, and get a new mortgage on a new home for us with the cash we have, or do we not have enough equity in the house to make it work?

If we can make it work, how do we go about it?

I know there are a few vague statements in there, but any advice would be welcomed.

Many thanks,

Rob.

nig0609

similar thread just started up, http://forums.moneysavingexpert.com/showthread.html?t=1577549

JayZed

Rob, I think you'll find it extremely difficult to get a BTL mortgage on your current home at a LTV of more than 90%.

One alternative might be to ask your lender for consent to let while staying on your current mortgage. If you've had the mortgage for a while they may be willing to do this. They are normally more willing if it's going to be a temporary arrangement (e.g. for a year or two) - they won't give you consent to let indefinitely. Consent to let policies vary between lenders, but no harm in asking.

Conrad

Of course I must advise you to obtain consent to let, but it has to be said plenty of people do not obtain consent, they just let it. I used to see this a lot in Cambridge where academics went on sabaticals elsewhere.

The biggest issue in my book is having the correct buildings insurance that reflects the risk at hand.

There are lenders that can consider a new mortgage for the new home without reference to the existing mortgage or lender.

Faced with your situation I would simply sell and move. Pay off my new mortgage asap then save cash to buy to let.