buying while renting existing property?

bincysmith

How would I go about buying a new property while renting my existing one? I currently have a house approx worth 140k with 68k owing and pay £312 pm for the mortgage. What would be the best way to rent my existing house and buy a property worth 250k while keeping the monthly mortgage payments as low as possible. I feel we have stayed on the first rung of the property ladder too long and though enjoy a low monthly payment seem stuck now to move up without it costing a fortune! Any help or idea's greatly appreciated.

markandjayne

Hi

we looked into this but then got a buyer (fingers crossed!) for our house and so plan to buy and sell on the same day.

In planning for the renting out:

We got an idea of the potential rental income and costs from a local property agent

We paid to up our maximum mortgage amount (£100 fee) as our existing mortgage interest rate is lower than any new mortgage we could get.
Afterwards, we asked our lender about renting the house out and keeping the mortgage rate the same - there was a 1% cost to do this.

It seemed important to borrow as much as possible against the house to be let out, as you can then offset the interest and costs against rental income (and so have a smaller tax bill) - I believe.

Hope this helps with some of your planning