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help re; renting
random12345
Posts: 2 Newbie
Hi,
A bit confused so thought I would ask someone that might have a clue!
I luckily own a house outright which is worth about 120k and wanted to rent it out to buy a bigger house. Would the money (rent) count as income and be included towards getting a big enough mortgage, because me + wife don't earn very much at the moment about £30k a year beween us, so could only get about 100k if we didn't sell up. Unless any one has a better way you could so it? Appreciate your help.
A bit confused so thought I would ask someone that might have a clue!
I luckily own a house outright which is worth about 120k and wanted to rent it out to buy a bigger house. Would the money (rent) count as income and be included towards getting a big enough mortgage, because me + wife don't earn very much at the moment about £30k a year beween us, so could only get about 100k if we didn't sell up. Unless any one has a better way you could so it? Appreciate your help.
0
Comments
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Possibly. I should see an Independant Mortgage Broker. But certainly not ALL the rent. Conventional wisdom is to expect 10 months rent a year (allow for voids between tenant, defaulting tenants etc), then there's tax, running costs etc, so a lender would take all that into account.
An alternative would be to take out a BTL mortgage on the current property (interest on this might be tax deductable), and buy the new place outright.0 -
ok thanks very much, I don't think I would be able to do it with a buy to let mortgage tho, because my house has a local needs clause on it : ( but doing it the other way might work out. I will have to look into it further. Many thanks.:)0
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