Info on buy to let?

gembo5

Hi, our house is currently on the market, but things are very slow as we expected. We have not yet looked into buy to let as didn't think it would be feasible. Plus a house we like has just dropped its price. Our mortgage adviser is on lv so just after some advice to give us some info to think about.

Our current mortgage is with n-wide and approx £10-15k in equity sat in it, we plan to take our existing mortgage with us. Is it as simple as looking for a good buy to let rate? Will the new BTL mortgage effectively cover the cost of our current home to free up the equity for the deposit on the new home?

Any info would be much appreciated as can never get our heads around mortgages!

Thrugelmir

Majority of BTL mortgages require a 75% LTV plus rental income of 125% of the interest cost on the mortgage. In addition affordability can be based on interest rates higher than the advertised rates i.e.7%. To stress test the scenario.

powerwin

gembo5 wrote: »

Is it as simple as looking for a good buy to let rate? Will the new BTL mortgage effectively cover the cost of our current home to free up the equity for the deposit on the new home?

IMO it will not be simple, a lender will need to look at all your figures and see whether you are suitable for BTL, i.e. whether you qualify for a lot more borrowing.

Rgds

GMS

If you are using the equity in the current property on the ported mortgage where would the deposit come from for the Buy to Let?

If your mortgage is portable it does not simply mean you can take the amount to a property elsewhere. You would still need to meet current criteria and have a suitable deposit.

de1amo

i have been loking at BTLs on my current home and they can be got at around 4 to 5 pc but obviously this is only open to 'prime' business.--i contacted a financial advisor and passed my ideas by him.(he seemed to think it ok because i have a big amount of equity)

summerstreetallotments

I didn't think you could have a B.T.L. mortgage and then live in it yourself - but I may be wrong...

de1amo

i have a home elsewhere and want to raise capital to fund another home in the elsewhere place! kinda BTL to Buy another place to let!-i am exploring the idea of not actually letting my original home despite actually taking a BTL mortgage because the figures are solid and i dont particularly want the hassle of absentee landlording!