renting current home and buying new home

kiers74

Hi your thoughts on this would be appreciated..

We have lived in our house since dec 2000 and have a fixed rate of 5.49 untill may next year. To buy out of this would cost 57.5k

ideally we would like to turn this into a buy to let property borrowing an extra 30k of the equity.

i have spoken to a mortgage broker and been offerd the following deals that i am not convinced are that great.

buy to let

value of house (realistic) 125k
current mortgage 57.5k
amount to borrow 30 k

total loan amount 87.5k

I have been quoted a 3year tracker at 4.99% with a repayment of £364pm
but must get a minimum of £583pm rent.

Purchase of new house

asking price 160k
deposit 30k

mortgage amount 130k

i have ben offerd a 2 yr fixed at 5.94% with a monthly repayment of £833

do you think these rates are ok or could i do better?

it makes me cross that the greedy $%^&&* lent anything to anyone and made a fortune, and now with the base rate so low i will have to pay a higher % than i did 4 years ago because of there greed.