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Newbie Question: Second house using first as deposit
jd1000
Posts: 76 Forumite
Hi all,
newbie question I guess.
We have a house. Its worth £200k at the moment. We bought it for 150k, of which 80k was a mortgage (this is now 60k).
My question is, could we buy a second house, using the the equity in our first house for the deposit on the second one, and renting out the first one?
Just trying to get my mind around it and if something like this is possible?
JD
newbie question I guess.
We have a house. Its worth £200k at the moment. We bought it for 150k, of which 80k was a mortgage (this is now 60k).
My question is, could we buy a second house, using the the equity in our first house for the deposit on the second one, and renting out the first one?
Just trying to get my mind around it and if something like this is possible?
JD
0
Comments
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It is possible. You are looking at a 'Let to Buy' scenario. Remortgage the first property on to a Buy to Let mortgage releasing funds for the deposit on the second property. Then get a mortgag efor the second one.I am a Mortgage AdviserYou 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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Remember that any interest payments on your first house's mortgage can be deducted from your net rental income to calculate how much tax you need to pay. Even if you make a loss during a particular tax year, declare the loss and you can bring that forward to future years in which you make a profit.0
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