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Mortgage Questions - buying a new house without selling the old one?
Pistol1
Posts: 13 Forumite
I need some mortgage advice. We really need a bigger house, and have been on the lookout for years. One has come on the market which is, I reckon, our best chance at getting what we want. It needs a lot of work, but the price is so much more affordable than anything we've looked at up to now. We're going to see it on Sunday and I really hope it's going to be the one.
Something we are considering, though, is whether we could afford to keep our current house and rent it out. We bought it for a pittance compared to today's prices, and if we were to rent it out we could easily charge double what our current mortgage repayments are! But, I need to know if we could make this work financially.
We owe about 30-33k on the mortgage at the moment, and the house has been valued at 100 - 105k. So if we sold it, we could release about 70k of equity towards the new house (which is 190k). As I understand it, if we wanted to keep the old house and rent it out, we would have to remortgage it, as you need a buy-to-let mortgage, correct?
So, how would it work? Would we remortgage our old house for the current market value, then stick the extra from that into the new house? Or do you remortgage the outstanding amount, and put nothing towards the mortgage on the new house? I don't know how it would work, but I'm really keen to find out!!
Something we are considering, though, is whether we could afford to keep our current house and rent it out. We bought it for a pittance compared to today's prices, and if we were to rent it out we could easily charge double what our current mortgage repayments are! But, I need to know if we could make this work financially.
We owe about 30-33k on the mortgage at the moment, and the house has been valued at 100 - 105k. So if we sold it, we could release about 70k of equity towards the new house (which is 190k). As I understand it, if we wanted to keep the old house and rent it out, we would have to remortgage it, as you need a buy-to-let mortgage, correct?
So, how would it work? Would we remortgage our old house for the current market value, then stick the extra from that into the new house? Or do you remortgage the outstanding amount, and put nothing towards the mortgage on the new house? I don't know how it would work, but I'm really keen to find out!!
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Comments
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Assuming you have no savings for the deposit on the new house, so the deposit will come from your old property? If so, then you could remortgage onto a "let to buy" basis which would probably raise about £35k, would this be enough to get you what you want?I am a mortgage adviser.You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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It might be; I guess I should speak to a broker and crunch some numbers!0
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