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Moving up

I would like to move up the property ladder and I am currently trying to workout the options available to me.

My current property is presumable worth around 85-95K in the current climate and has about 55K owing. Rather than trying to sell the property, I thought I might request permission from my mortgage provider to rent the property out for x years by which point the property market may (or not) have recovered and I would be in a better (or worse) position to sell.

In the meantime I would be looking for a second property of around £130k with about £25k savings and £105K mortgage.

I earn 35K gross and whilst I am sure I could afford this, I am not sure if any mortgage providers would lend to me. My credit rating is good and I only defalted once by accident on my mortgage about 6 years ago. I don't have any other debts.

My questions are around getting another mortgage. Would it be classed as a 2nd mortgage ? Would my current mortgage reduce the amount I could get ? Would I need a specialist mortgage or could I take one of the mainstream deals ?

I don't know alot about mortgages and how they are underwriten.

Comments

  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Do you fully understand the implications of being a landlord? All the risks and responsibilities that go with being one.

    Does your existing lender allow CTL and if so under what terms?
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