mortgage advice

budweiser

Hi im after some advice please,we really need to move out to get a bigger place now with the two kids theres not enough room.
I have owned a flat for nearly 5 years now on an interest only mortgage and as the house prices have fallen we have little or no equity so i cant sell at the moment but i can rent it for more than the mortgage(£663 payments £850 rental a month)
Ive put an offer in on a place which has been accepted and we've got a 10% deposit saved in the bank.

Now the problems are:
1. I've only the first year of accounts from my buisness i started march08 - march 09 showing a nett profit of 70k and March to now also showing a healthy profit but no proof of income prior to this.
2. Our existing property as it wouldnt be worth selling but to change the mortgage to a buy to let i would need 75% ltv .would a mortgage offer be on condition of us selling our property or could i not say anything and just rent it out ive been guaranteed the rent for 12months payable 6months in advance

have spoken to 2 Mortgage advisors who both say there is very little without a 15%-20% deposit and have approached HSBC who gave me a loan in principle but now the problem is showing 3 years of accounts.

Any advice appreciated

Edd

getmore4less

If you have £70k profits, I would just wait a bit must be able to save £25k at least, and you will have a much bigger deposit and accounts for another year, prices are going nowhere so not chasing a rising market.

Check if your existing lender will allow you to let the place out. they may without insisting on a change in LTV the rent covers the mortgage interest at 128%.


If you reallt need to move, another option if you can rent your place is to rent a bigger place while you build up a bigger deposit and longer accounts, also allow you to take time to look for a great deal on a place or try out a new area.