Using home to get a mortgage on 2nd home.

hass123456

Dear forum,

I own a home - it has no mortgage. I want to rent out this home, and buy a second home to reside in.

What are my options? Can I secure a mortgage using my current home...in conjunction with my salary?

I have 10-20% which I can use for a deposit where required.

Thank you in advance.

Thrugelmir

Your ability to afford the new mortgage will be the primary criteria.

With only a 10% deposit your options will be limited and the interest rate high.

hass123456

Realistically I can conjure 20-25% for a deposit. The first half of the answer is handy.

Thanks for the reply.

GMS

You could possibly remortgage your current property on to a Buy to Let mortgage using any funds raised to purchase the new property or to reduce the borrowing.

This could help secure a better rate on the new mortgage as lower Loan to Value and allow you to offset your mortgage on the rental property against tax.