home to small to live in

mj77_2

Hi, i currently have a mortgage on a one bedroom apartment and live with my partner and have a two year old son. the current home is too small to live in but with the current econmic crisis i cant sell the place. Is it possible to get another mortgage to buy a bigger place to live in and rent out the exisiting apartment. The rent would cover the exisiting mortgage monthly payments. There is not enough equity in the apartment to change it to a buy to let as most lenders seem to only lend 60%. Is there a way round this as we desperately need to find a larger home to live in.

TEDDYRUKSPIN

First you need to check with your existing mortgage provider if you can rent the current flat. Some providers might request for you to go on to a buytolet mortgage.

More and more companies are now factoring buy to let mortgages as a second liability / loan. Therefore, do not be completely surprised if the both of you are unable to borrow a substantial amount. The main reason for this is because many properties are struggling to be let out in the current market also (i.e. depending on area/region).

MoneyMummy_2

Hi, sorry I don't have an answer to your question but just struck me that you could always rent your house out to cover the mortgage and rent something bigger yourself until the market picks up a bit. That would solve your space issue in the short term, and a lessy of a risky option.

MoneyMummy_2

I mean less of a risky option. lol

ekkygirl

You could buy a new house and sell your flat in to the developer

Thrugelmir

If you are serious about moving, reduce the price of current home to sell it. Retaining your existing home as a BTL is not risk free.

twentypenceoff

why did you move to a two bedroom with a child?where were you living previously?

socrates

twentypenceoff wrote: »

why did you move to a two bedroom with a child?where were you living previously?

huh??????

Prudent

I was in this situation in the early 1990's. When we were looking at houses, we came across someone who wanted to down size and did a part exchange, It might be worth asking local estate agents if they know of anything.