Can borrow to buy a second house and rent my first.

david0099

I want to buy a second house a few miles from where I live as a renovation project (it just needs modernising) and to live closer to family and friends.
I own a house worth about 750K with 100K mortgage and I have seen a house I want to buy for about 400K. I would like to rent out my first house to pay the interest on a 500K mortgage so I can buy the second house. Then later on raise some money if possible to renovate the second house that I will be living in by then.
Will Mortgage lenders lend of this basis? I dont really want a buy to let mortgage as I understand they are expensive compare to a residential mortage.
Any advice welcome?

Cannon_Fodder

Buy-to-Let it will be. Admittedly in a backwards fashion. But you'd have to tell your lender it was rented out, even if you didn't re-mortgage for the extra money, as their terms would state it should be your main residence...also your house insurer would need telling, to avoid the risk of any claims being refused.

Just go to your lender, who you should get a good deal from with all that equity...

One reason BTL mortgages might be more expensive is because of the risk that you do not manage to collect rent every month etc. Understandable, unless you expect them to carry that risk for nothing?

After your taxes have bailed out the banks it would be a good idea for them to adopt practices that do not cost any further taxes, I would suggest.