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using equity to buy another house?
dotty_totty
Posts: 35 Forumite
is it possible, if we rent out our current house, to use the equity in it to use as a deposit on another property? We cuurently owe about £57k and its worth approx £150 - £160k. :wave:
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Comments
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Yes, that is what most people do who have a rental property. You could use 100k from your house (assuming they value it at 150-160k) and you could remortgage to raise the excess (unless you can find another house for 100k).
One of the Financial Advisors will be able to giev you the details though0 -
General guidelines, assuming good credit, secure job etc:
on your rental property (which would be your current home) you could get a mortgage of upto 85% provided the rental income was at least 25% more than the interest on an interest only mortgage.
On your new home you can get a mortgage of about 2.5-3 times your salary.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
You would not really be able to borrow £100k as really the maximum would be 85% loan to value (as silvercar says)0
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