Do you think I can buy this house?

Danjames90

Hi

A quick question I would like to run past people as I am keen to here your advice.

My situation.

I am looking to buy the house I live in currently, at present I rent it for £800 a month. The house is up for sale for £260,000.

I earn £29,000 a year my partners earns £21,000 a year as a teacher. We have a child under three.

I have no debt, a small amount of savings and a reasonably good credit history. I also own 2 buy to let properties and have estimated there is about 35 to 45k worth of equity in them.

A mortgage of this size would no doubt cost me in excess of £1,500 a month as a repayment mortgage, i understand that.

What I am trying to do is not sell the two buy to let properties I have worked so hard to buy but use them as equity for this property. Do you think any lender would even entertain this idea?

Thanks.

getmore4less

you need cash for a deposit.

Will the LTV/rent on the BTL let you release the equity?

Lets say you can raise £50k with your little bit of savings after purchace costs(£260k is mad with the stamp duty)

Then you need over 4 times joint salary which is extreem end of lenders limits.

£800pm rent on £260k is gross yield 3.7% no wonder they want to sell it is cheaper to rent than buy and you don't have to fix the place when it breaks.

Hope they bought much lower and are trying to cash in rather than cut their losses.

What yield are you getting on your places on your purchase costs?

JA1000

Nothing is going to sell for £260k in the black hole between £250k and £275k, that will be £250k before you even start to negotiate. Deposit is your problem I think the lending is not the issue quite a few will do 5 x joint just go on to Barclays web site to see, however very different when you apply.

Cannon_Fodder

http://forums.moneysavingexpert.com/showthread.html?t=2314185&highlight