Multiple mortgage help!

bafi

Hi everyone,

little bit of advice required. Current situation - I own my residential property which is currently in negative equity by about 50,000. i also own 2 other rental properties which tick along nicely making a profit and overpaying their interest only mortgages. Engaged to be married and fiance brings £50,000 deposit along. we have been looking at options and have seen a property in a perfect location for us.

We would like to let my current residential property and get a mortgage on the new property - its on at £150000 - needs a fair bit of work but we are prepared to do that. Total salary from both of us is £75,000. No debt or poor credit histories - how likely are we to get a mortgage?

any advice or other options welcomed

Trying_to_be_good

The real issue will be how you finance your current home, which you plan to rent out. You'll not only need to clear the negative equity, but also put down a sizeable deposit if you're planning to mortgage that with a BTL mortgage.

The other option would be for your fiance to buy the new property in their name only, leaving your current home in your name, but I don't know if the lender would be prepared to allow you to let it.

Why not stay in your current home, clear the negative equity and start paying off the mortgage?

Thrugelmir

Why are you overpaying the BTL mortgages, particularly when you are in negative equity. Also you are exposing more of your rental income to tax as the interest paid falls.