Remortgage advice

jayswann

Hi,

I was wondering if I could get a bit of advice.

I currently having a mortgage on my house which currently stands at 57k. The mortgage is a base tracker which is only .25% above the base rate.

Me and my wife decided move to a bigger house which we are currently renting, and have rented our house out while it is on the market. Unfortunatley, we also have credit card debits of approx 6k (which is currently on a 0% interest rate card) and where told this would hinder our chances of getting another mortgage for a second house.

As you can imagine in the current market, the house is not budging, and this is my question:

Would it be a good idea to remortgage our current house as a buy to let for approx 75k (is this even possible?) which would give us enough monies to clear all debts and have a substantial deposit for a second mortgage?

thanks in advance

hcb42

you wouldnt be clearing your debt - you would just be moving it, and paying it back over a long time frame.

If it is on 0% at moment concentrate on overpaying it to get rid before the interest kicks in.

you wont be excluded from getting a mortgage for having a few $$$ on a credit card though - it depends on the overall financial position.

jayswann

Thanks for the reply. My main worry at the minute is that the house is not shifting at all. The profit that we were going to make on the sale wad going to fund the deposit for a new house. Now if we remortgage enough to get the deposit and rent the old house out would that be doable and wise? Now the rent for the new house would mote than cover the cost

maninthestreet

jayswann wrote: »

Thanks for the reply. My main worry at the minute is that the house is not shifting at all. The profit that we were going to make on the sale wad going to fund the deposit for a new house. Now if we remortgage enough to get the deposit and rent the old house out would that be doable and wise? Now the rent for the new house would mote than cover the cost

Why isn't your house 'shifting'? Is it over-priced?

anh1904

At 0.25% above base you should be laughing.
Remortgaging to a buy-to-let mortgage you will be paying probably triple the interest rate, yet getting no more by way of rent.

Agree with another poster that overpaying the CCs to get them down to zero before interest kicks in should be a priority though.

Flyboy152

jayswann wrote: »

Hi,

I was wondering if I could get a bit of advice.

I currently having a mortgage on my house which currently stands at 57k. The mortgage is a base tracker which is only .25% above the base rate.

Me and my wife decided move to a bigger house which we are currently renting, and have rented our house out while it is on the market. Unfortunatley, we also have credit card debits of approx 6k (which is currently on a 0% interest rate card) and where told this would hinder our chances of getting another mortgage for a second house.

As you can imagine in the current market, the house is not budging, and this is my question:

Would it be a good idea to remortgage our current house as a buy to let for approx 75k (is this even possible?) which would give us enough monies to clear all debts and have a substantial deposit for a second mortgage?

thanks in advance

Have you informed your mortgage lenders that you are letting the property?

Thrugelmir

jayswann wrote: »

Thanks for the reply. My main worry at the minute is that the house is not shifting at all. The profit that we were going to make on the sale wad going to fund the deposit for a new house. Now if we remortgage enough to get the deposit and rent the old house out would that be doable and wise? Now the rent for the new house would mote than cover the cost

What's the value of the existing property?

How much equity are you looking to release?

What's the rental value?

jayswann

Thanks guys just going to talk with someone and see if its worthwhile