will i get a new mortage

mat2113

hi, I have a mortgage with the woolwich of £14000, the house is valued at £100,000. My g/f and I have seen a house will like for £55,000 it needs about £25000 sending on it, it would then be worth around £110,000.

we earn £26000 per year. once the new house is done, we would move in to it and rent the old house out for £350 ( friend of the family ). we have no debt at all.

we would have to have a mortgage of about £95,000 over the two houses, would we by able to get that much of a mortgage

thanks mat2113

RufusA

Possibly - you really need to speak to a mortgage specialist.

For your existing property you should be able to get a Buy To Let mortgage. BUT it would need a proper rental agreement etc.

With £350/month income from rental you'd be allowed to use £280/month for a mortgage which if you can find it allows for a £55k approx BTL mortgage at 6%ish APR.

For the new house you'd therefore only need a £40k mortgage which appears to be affordable and under 75% LTV.

Some lenders will add a percentage of the rental income on to your normal income and then use standard multiples to access affordability for both mortgages combined. If this is the case you'll probably be refused a mortgage on affordability grounds!

You'd also need to find all the mortgage / legal fees, cost overruns etc. and find a sympathetic lender who's comfortable lending on a property that needs a lot of work. Not to mention affording two properties with no rental income for a while whilst renovating etc.

This all assumes you have immaculate credit and a good history,

Speak to a specialist (whole of market independant broker). I suspect it is do-able, but you need to be comfortable with the risks, and it may be challenging to find a sympathetic lender at a reasonable price in this market!

HTH - Rufus.