Am I able to rent my house and buy a 2nd home?

Scrammer

jojothefirst wrote: »

Thanks for all the info. Some very helpful stuff there.
If we had to provide proof of are house being rented we could move out to my parents temporary or like has been suggested, rent somewhere else for 6 months and could possible build up more of a deposit and do more research as well.
My hope is to buy a house for around 80k and get 5% back through vender gifted deposit which would be 4k so I would need to get a extra 2k on top of my 2k I already have............. I'm thinking this is properly not realistic but I don't know until I get as much info as possible.

This sounds like the kind of lending that got the banks into a big mess.

I think you will struggle to find a lender, but I am no expect.


What is this vender gifted deposit? Sounds like a 105% loan in effect, I thought they has put a stop to that kind of lending?

lyndasharp

Don't forget to add on solicitors costs and removal costs... you could just save your £300 a month for a year or two, and then look again at moving? Why is your £85-95k 1 bed valued more than the £80k larger property you're hoping for? I hate to say it, but maybe you are hoping for a bit too much for your house, if someone can get a bigger property nearby for £10-20k less.

Renting out a property is quite a risk if you have no spare money to cover rent voids and problem tenants.

if you desperately need to move perhaps you could seriously consider dropping the price of your house to the minimum you can accept, even if you don't take away any equity, at least you can rent and save for a deposit on somewhere in a few years time.

Good luck :-)

mlz1413

vendor deposits tend to be on new builds, so I'm assuming the builders are offering you incentives to buy from them - would they just drop the price?

with 2 small children I'd just sell up and buy the next one, as you probably don't want the hassle of being a LL.

if you change your current mortgage to a B2L you will need at least 25% equity as most only offer 75% LTV max, it could be as low as 60%.

getting permission to let and paying a higher rate is possible but will you be able to afford the mortgage as and when rates go up again?