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Buy to let mortgage

leatherneck
Posts: 17 Forumite
Hi,
Does anyone have any experience of buy to let mortgages?
I am wanting to raise some money to help build a house, I own a flat in Newcastle which is valued at atleast 73K, considerably less than 2 years ago, so we would like to keep hold of it for a few years more. the flat is rented out and is grossing 425/month.
I want to raise enough so that the rent covers the mortgage payments.
The flat is mortgage free at the moment.
Thanks for reading.
Does anyone have any experience of buy to let mortgages?
I am wanting to raise some money to help build a house, I own a flat in Newcastle which is valued at atleast 73K, considerably less than 2 years ago, so we would like to keep hold of it for a few years more. the flat is rented out and is grossing 425/month.
I want to raise enough so that the rent covers the mortgage payments.
The flat is mortgage free at the moment.
Thanks for reading.
0
Comments
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Is there no mortgage on the flat?
The maximum you could raise is 75%
However the rental income would need to cover the mortgage payment by 120-130% (depending on the lender chosen)I am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
As I said, the flat is mortgage free.
Any help would be appreciated.0 -
You have not said how much you want to raiseI am a Mortgage AdviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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Against a valuation of £73k you could raise a maximum of £54,750 (being 75% of the value). The interest on this would be around £240 per month, depending who you borrow from, the surplus in the rental income would allow you to repay the capital also.
Assuming your credit status is good you shouldn't have a problem. If this isn't enough to fund the build though it will be a waste of time.
Looking at self build finance is another option, may be worth talking it through with a good broker to gaet a handle on all of your options.Happily an ex mortgage broker!0
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