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Remortgage - Let to Buy
funlovinguy
Posts: 1 Newbie
I am considering letting my current home, first of all obtaining a remortgage to raise the deposit on the next property and would welcome any advice.
Property 1: My existing home was valued about 18 months ago for a Kensington remortgage to fund a BTL. The valuation at the time was £235,000. Prices around here have not dropped, a slight increase maybe, but lets assume that £235,000 is a realistic current valuation.
My current mortgage is around £50,000 so there's bundles of equity. The deal with Kensington is fixed for three years and I face an exit penalty. Kensington's mortgage book was taken over by Derbyshire Home Loans (Derbyshire BS) last year. All payments are up to date. Capital and interest repayment.
Property 2: The existing BTL property was valued at £90,000 at the end of 2005, subsequent identical (flats in the same block) have sold at £100,000 and £105,000. The outstanding balance is £70,000. Interest only. Mortgage with SPML.
As you can tell by the current lenders, I have had some adverse credit, but everything is back under control with just one default judgement due to come of the credit file in 07/2008. There are two satisfied judgements entered in 2001 and settled in 2002.
From an asset point of view, I have plenty of equity.
I am self employed, and need to self certify.
I am now looking at buying another property and letting my existing home, as above remortgaging to fund the deposit on property 3.
Property 3 is on the market at £350,000.
What options are open to me please?
Thanks!
Property 1: My existing home was valued about 18 months ago for a Kensington remortgage to fund a BTL. The valuation at the time was £235,000. Prices around here have not dropped, a slight increase maybe, but lets assume that £235,000 is a realistic current valuation.
My current mortgage is around £50,000 so there's bundles of equity. The deal with Kensington is fixed for three years and I face an exit penalty. Kensington's mortgage book was taken over by Derbyshire Home Loans (Derbyshire BS) last year. All payments are up to date. Capital and interest repayment.
Property 2: The existing BTL property was valued at £90,000 at the end of 2005, subsequent identical (flats in the same block) have sold at £100,000 and £105,000. The outstanding balance is £70,000. Interest only. Mortgage with SPML.
As you can tell by the current lenders, I have had some adverse credit, but everything is back under control with just one default judgement due to come of the credit file in 07/2008. There are two satisfied judgements entered in 2001 and settled in 2002.
From an asset point of view, I have plenty of equity.
I am self employed, and need to self certify.
I am now looking at buying another property and letting my existing home, as above remortgaging to fund the deposit on property 3.
Property 3 is on the market at £350,000.
What options are open to me please?
Thanks!
0
Comments
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Bump!!!!!!
I'm thinking along these lines too!Don't lie, thieve, cheat or steal. The Government do not like the competition.
The Lord Giveth and the Government Taketh Away.
I'm sorry, I don't apologise. That's just the way I am. Homer (Simpson)0 -
How much deposit do you intend putting down on property 3?
What do you think the rental income will be for property 1?
How much is the rental income surplus above the mortgage payments on property 2?
Do you have any outstanding finance - loans, credit cards, HP, storecards, overdrafts etc
What is your income and the income of any other parties to the mortgage on property 1?I am a Mortgage Adviser
You 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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