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Advice - Investment and new purchase...
gordon.hunter
Posts: 12 Forumite
Hi all,
currently have a mortgage for £206,000 with Nationwide on a BMR (Base Mortgage Rate) which equates to 2.5%.
Looking to re-locate whilst keeping current property for investment purposes.
If current property is successfully rented out to cover existing mortgage, does that allow us the full multiplier for a new mortgage?
What are my options?
Kind regards,
Gordon
currently have a mortgage for £206,000 with Nationwide on a BMR (Base Mortgage Rate) which equates to 2.5%.
Looking to re-locate whilst keeping current property for investment purposes.
If current property is successfully rented out to cover existing mortgage, does that allow us the full multiplier for a new mortgage?
What are my options?
Kind regards,
Gordon
0
Comments
-
You first need to ask the lender for consent to lease, which may mean you will lose your 2.5% deal in favour of a more expensive BTL rate. You will also need to factor in income tax, you can't simply say the rent will cover the mortgage. Lenders will usually need more assurance than that your tenant is currently covering the mortgage, as you may not find a replacement or your tenant may default on the rent. You will probably need to leave plenty of equity in the property, which often throws up the issue of needing a decent deposit for your new home.Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️0
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