Becoming A Landlord.....Help!

lukeg81

Hi Guys,

i have about 25k in my residential property at the moment and i found i am allowed by my mortgage company to let this property out for a small admin cost of £100.

my problem is i cant raise the funds for a deposit for another residential property for us to live, my current provider no longer lends.

does anyone know of any ways around this so i can move home and let my current property out? whilst keeping the same mortgage?

dont know how well i have explained this so please be gentle

Accountant_Kerry

the only option is stay where you are, or let out your property and rent yourselves.

lukeg81

thanks kerry,

i was hoping there may be a way of me setting up as landlord/lettings business, taking out a loan against my current property (the one that would be let) to fund deposit for my personal residential property?

or something

somethingcorporate

I hope not, sounds like a huge risk for the bank and for yourself.

As above, you either live in your current place or use the rental income to cover the rent on a new place.

lukeg81

thanks SC

but if the bank loaned you the money on a house that has that equity in, wouldnt it be at minmal risk?

our joint household income is about 37,000.

just trying to explore every avenue....probably will end up renting and renting my current property out!

somethingcorporate

lukeg81 wrote: »

thanks SC

but if the bank loaned you the money on a house that has that equity in, wouldnt it be at minmal risk?

our joint household income is about 37,000.

just trying to explore every avenue....probably will end up renting and renting my current property out!

Usually a lender would require a 75% LTV to grant consent to let (or have a B2L mortgage on it). This means with your 25k equity it would leave you at the limit.

If you were at 50k you could probably remove the £25k to take you to 75% LTV. Speak to your lender, depending on who it is they may let you go higher (Bank of Ireland have said we can go to 90% and consent to let) but I think this is quite rare.

Good luck

Accountant_Kerry

the bank would tell you to sell this property to use the equity, they won't lend against this sort of equity and your LTV would be to high. your consent to let would also possibly be withdrawn as it wouldnt be on the same terms.

i have had to rent out my property and rent myself until i get deposit money together for another property so you aren't alone.