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Buy to let mortgage?

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Hi everyone (I've also posted this on the house buying part of the forum as was unsure where to ask the questions!)
- my partner and i have lived in my house for the last 12 years and rent her terraced house out - she is just about to pay her mortgage off and will continue to let her house. We are wondering if she or we could buy another terraced house to let but are unsure how to go about borrowing the money to do so. We are both working and would be looking to buy a terrace of a similar value to her existing one.
I'm hoping to pay off my mortgage in the next 12 months too. (thanks to loads of help from this site!)
If this is possible would we need a large deposit? or could we use the equity in her house in some way? - should she pay the mortgage off (about 6K) or remortgage to buy the new house?
She doesn't currently have a Buy to let mortgage as her lender agreed to her letting her house when she moved in with me.
We realise that there would be cap gains tax issues in the future but wouldn't be planning on selling it for several years until we retire.
All advice much appreciated.
CHI

Comments

  • hearts
    hearts Posts: 1,191 Forumite
    Consult a Mortgage Advisor.

    Basically you would remortgage one of your existing properties and use the money as a deposit on the new one.
    BTL mortgages are running at about 75% so you would need to remortgage for 30% ( an extra 5 to cover expenses) of the cost of the new property.
    Cost of new property 100k you need 25k. +5k.
    Thats a rough idea.
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