complicated mortgages

minniethemoocher_2

Here is my dilemma. I am moving from my too small house which has a third of it mortgaged, to a larger house. My existing house is going onto a buy to let and the new house a repayment. I am on a low income(pension early retirement) my mortgage advisor has found mortgages for both houses as my existing mortgage is with norther rock not fixed , my question is, the rates seem poor 4.79% on a fix repayment for the new house(residential) this isnt too bad, but the buy to let for the house I am leaving is 5.43% with a £1799 fee. It seems that my low monthly income pension means some firms don't want to offer me, Finally I own another small house that is paid for however I receive no rent for this as an elderley close relative(on income support) lives in it, and the council refuse to pay for relatives here. I am raising an extra mortgage from this to make the others more payable, however, to raise £30.000, the fee for the mortgage is £1799 ata fixed rate of 5.40%. Any comments regarding fixed rates or exploring other firms would be welcome

Conrad

There a very few B2L options for those on low incomes, so it does not sound bad. In any event, the rate is low compared to the long term histoic average.

You say you are attmpting to raise £30k on the existing other property where a relative resides and pays you no rent. If the lender finds out no rent is paid, for example the valuer might find this out, no one will grant a mortgage on that one. Furthermore any lender is likely to require a tenancy agreement for that property with the rent payment shown.

Thrugelmir

If as you say you are on a low income. Why expose your self to an increased level of borrowing? Selling your current property would enable you to seek a reduced mortgage and not risk exposure to rising interest rates in the longer term.

minniethemoocher_2

Thanks for the advice and I will mull over my options and all your comments