how much can we borrow?

Annft

Hi we have seen a house today for £350k, we have 50% deposit to put down. I would like some advice please on how much we could borrow. We have a house that we rent and we are living in a mortgage free home at the moment. we would like to sell our house after we move as we dont have time to put it on the market now and there are a few jobs that need doing on it. Could we borrow against the 2 houses? we were thinking of an interest free one and when we sell the house we are living in we could then pay off the mortgage. is this a good idea? we are both working full time and the rental income for the other house is about £600pcm. this is mortgage free as well. any help would be appreciated. many thanks

_Andy_

What is your income (gross annual) from the FT work?

Annft

Our gross annual income is approk £48K

getmore4less

Assuming there is money set aside for costs and the DIY on the existing house

Loan required £175k so 3.6 multiple

Should be possible but I/O is probably not that easy.

Could look at BTL on the rental but probably not worth the costs involved even with the tax relief.

Residential offset on the new place is worth a try sell the other place and go 100% offset no point in paying it off if it costs nothing, keep it going in case you want to move again.

dimbo61

If you took out an offset mortgage with a LTV of 60% and used the extra money to do the DIY on your existing house while living in the new house then when it sells you could put the profits from the sale into the offset account.

Annft

Hi thanks for all your replies, will look into all the possibilities.

regards