Mortgage help needed!

arieo_2

I am new to this forum so please bear with me! I need some advice about how to start with our house buying situation. We have had our house on the market for some months, have dropped price but have not sold. We have a mortgage of £50,000 and approx £95,000 equity in property.

We have seen a property on market £190,000 and are considering an offer - now with a view to remortgaging our house to buy to let rather than selling. We would want to remortgage to include a deposit of maybe £40,000.

How difficult is this to do and how do we start to approach lenders? I am assuming we would approach different lenders for moving and buy to let mortgages but does this make it more complicated? We are both in full time employment with good credit histories. Total income approx 60k.

Any help or advice very welcome! I am usually good at researching online and working my way through processes but bit baffled by where to start!

herbiesjp

You could approach your current lender and ask for consent to let.

If they decline you will need to get a BTL mortgage - and this will be assessed on the expected rental income, in order to agree the mortgage amount (different lenders have different criteria on this basis)

For the new purchase you will need a lender happy with the fact you are letting out your first property and buying a new one (let to buy scenario).

In theory in can be straight forward, however in reality, there can be many hoops to jump through in terms of criteria that it can get messy - and applying to the wrong lenders can cause problems with wasted credit searches.