possible???? mortgage advice pls.

minimoto

first time poster long time lurker...

live in house £79,000 mortgage, property worth at best £100,000 at worst £85,000 a few for sale already on our street that cant sell.

want to move to better area, looked at house up for £120,000 but agent hinted they want a quick sale as its empty and would take less.

would i be able to rent our house out, and buy the other?

me, £18,000pa
wife £8,000pa (plus bonus, usually around £1000)
tax creds 7000pa

no notable deposit but couple of thousand to cover fees etc.

minimoto

any one...........

wymondham

you need to give people more time to reply - 30 minutes is not very long!

seems a risky way to live in a nicer area - any reason for the rush? Renting out your place is a big step and a huge financial risk...

betmunch

no deposit? No deal.

Sorry

minimoto

sorry lol... impatient!

not really any rush just nearer daughters school, nearer family to help out with childcare, nicer house/garden etc....

understand the commitment to renting out, just see it as a good way to keep an asset, neighbours rent theirs out at £500.

minimoto

bet much, what about if family were willing to come in on mortgage/ provide a deposit?

betmunch

That changes everything!

With a deposit then you should be able to get it sorted.

If you can get yourself 15% deposit then can probably be done without them having to go on the mortgage. Maybe even with just 10% but I cant remember off the top of my head!

minimoto

great.

dad offered £20,000 which is more than 15% if we get the new place for less than £120,000 which we think we will.

would we have to get our current house to 75% LTV to get a buy to let mortgage?

I wanted to get some facts before we see an advisor, didnt want them to laugh in our faces!!!!

xtmc

betmunch wrote: »

That changes everything!

With a deposit then you should be able to get it sorted.

If you can get yourself 15% deposit then can probably be done without them having to go on the mortgage. Maybe even with just 10% but I cant remember off the top of my head!

Some good advice there thanks

betmunch

Minimoto - You may not need to do anything about the LTV of your current mortgage, check with your current lender on what they want done. They may just give you consent to let if you ask.

xtmc - Thank you, I try to contribute when we're quiet!

Henry_P_Chester

I believe the mortgage company will take into account your current mortgage payments on your buy-to-let when offering you a mortgage so I doubt you could borrow enough. I don't think you can take into account assumed rental income.

Why can't you just sell youe first home?