We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Changing Mortgage to But to Let
GJC_2
Posts: 8 Forumite
Dear all,
I currently own a 2 bed flat which valued at £130K. I only paid £95k for it just over a year ago so essentially I am sitting in £35k equity.
How easy is it for me to release the equity, change my mortgate to a buy to let and hopefully let out, then use the equity as a deposit another property, thus meaning I will now own 2 properties, 1 but to let and 1 to live in?
Any help will be appreciated. Thanks
Gordon
I currently own a 2 bed flat which valued at £130K. I only paid £95k for it just over a year ago so essentially I am sitting in £35k equity.
How easy is it for me to release the equity, change my mortgate to a buy to let and hopefully let out, then use the equity as a deposit another property, thus meaning I will now own 2 properties, 1 but to let and 1 to live in?
Any help will be appreciated. Thanks
Gordon
0
Comments
-
I think, normally, a BTL mortgage will cover 85% of the property value. So from this point of view effectively you only have 15k extractable equity.
What are the local rents like, again, I believe BTL mortgagees expect you to pull 115% of mortgage in rent.
Of course, there's always someone willing to lower the bar."Mrs. Pench, you've won the car contest, would you like a triumph spitfire or 3000 in cash?" He smiled.
Mrs. Pench took the money. "What will you do with it all? Not that it's any of my business," he giggled.
"I think I'll become an alcoholic," said Betty.0 -
I estimate that I could successfully get £550 per month for my rent, a decent return but not sure if this would be enough.
Is 85% factual? Is there lender's out there who would cover say 90%?0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 354.4K Banking & Borrowing
- 254.4K Reduce Debt & Boost Income
- 455.4K Spending & Discounts
- 247.3K Work, Benefits & Business
- 604.1K Mortgages, Homes & Bills
- 178.5K Life & Family
- 261.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards